Amidst fear of new Covid variant, the Finance Ministry has reinstated the exemption on Covid-19 vaccination from import duty. This exemption will be available tll March 31. However, it will be subject to five per cent IGST (Integrated Goods & Services Tax) .

This exemption will mainly help Serum Institute of India, manufacturer of ‘Covishield’.

A notification issued by the Finance Ministry says, “on being satisfied that it is necessary in the public interest so to do, hereby exempt” Covid vaccine from Custom Duty. It will be applicable when vaccine imported into India by Central Government or State Governments, from the whole of the duty of customs (import duty in case of import) leviable. “This notification shall come into force on January 14, 2023 and remain in force up to and inclusive of the March 31, 2023,” it said.

Earlier, the exemption was available till June 30, 2022. A senior government official told businessline the reason behind the extension: “This is one of the preventive measures keeping in mind rapid spread of new variant across the world. At the same time, this aims to facilitate higher supply from Serum Institute of India, whose plant is located in Special Economic Zone (SEZ).”

Also read: How much will the Centre allocate for Covid vaccines in this Budget? 

Further, he explained that as goods produced in SEZ are for export, supply from Serum’s SEZ plant for domestic market is possible through import. “As Serum is the largest supplier of vaccines in India, so in order to facilitate import, exemption has been given,” he said.

At present, 12 vaccines are approved for use, but of them, three are used mainly. These include Covishield, Covaxin, and Corbevax. Government data shows over 220 crore vaccination doses, including booster dose, have been given.

The decision to restore the exemption has been taken three weeks after Prime Minister Narendra Modi chaired a high-level meeting to assess the Covid-19 situation in the country, preparedness of health infrastructure and logistics, status of the vaccination campaign in the country and the emergence of new Covid-19 variants and their public health implications for the country.

In the meeting, Prime Minister directed officials to ramp up testing and also genomic sequencing efforts. States have been asked to share a larger number of samples with the designated INSACOG Genome Sequencing Laboratories (lGSLs) for Genome Sequencing on a daily basis. This will support timely detection of newer variants, if any, circulating in the country and facilitate undertaking requisite public health measures.

Also read: Modi announces ‘Aarogya Maitri’ project to provide medical supplies to developing nations in crisis 

Prime Minister urged everyone to follow Covid appropriate behaviour at all times, especially in view of the upcoming festival season, including wearing masks in crowded public places. He also urged that that precaution dose may be encouraged especially for vulnerable and elderly groups. He was informed that there is adequate availability with regard to medicines, vaccines and hospital beds. He advised to regularly monitor availability and prices of essential medicines.

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