China cuts VAT for second batch of anti-cancer, rare diseases drugs

China has cut value-added tax (VAT) to 3% on imports, production and sales of the second batch of anti-cancer and rare diseases drugs in a bid to lower costs for patients and boost its pharmaceutical industry, customs said on Thursday.

A total of 14 rare-disease drugs, 39 anti-cancer drugs and six pharmaceutical ingredients of anti-cancer drugs have been included in a lower tax bracket from Oct. 1, according to a statement issued by the General Administration of Customs.

China issued the first batch of VAT reduction list on rare diseases drugs last year, covering 21 drugs and four ingredients.

(Reporting by Muyu Xu and Se Young Lee; Editing by Muralikumar Anantharaman)