The National Board of Revenue (NBR) has exempted advance tax on the import of raw materials used to manufacture cancer drugs, according to a notification issued earlier this month.

The move follows a decision by the income tax department under the NBR to reduce the tax at source on the import of ingredients for oncology medicines from 5 percent to 2 percent. The measure aims to lower production costs and drug prices, a step welcomed by manufacturers.

Cancer drug manufacturers previously had to pay a 5 percent advance tax (AT) under the value-added tax (VAT) system to import these ingredients, said Barrister Md Bodruzzaman Munshi, second secretary in charge of the VAT Act and Rules at the NBR.

"Now, the AT will no longer apply to them," he said.

"The government is working to improve cancer treatment and make medicines more affordable. If cancer drugs are produced locally instead of being imported, prices may decrease," he added.

Officials said the NBR provided the tax and VAT benefits based on recommendations from the health ministry.

The initiative comes at a time when cancer prevalence is rising in Bangladesh, and several pharmaceutical companies are manufacturing oncology products for both domestic and export markets.

Currently, the cancer prevalence rate in the country stands at 106 cases per 100,000 people, with a higher incidence among males.

Cancer accounts for 11.9 percent of all deaths in Bangladesh annually, according to a study conducted last month by Bangabandhu Sheikh Mujib Medical University.

The study also revealed that 52.9 new cases are reported per 100,000 people each year.