The government is reportedly reviewing two major policy changes aimed at reducing healthcare costs and accelerating the shift toward a digital economy.

Officials are considering removing the 3% value-added tax currently applied to imported finished life-saving medicines under the 12th Schedule. This levy has increased the overall tax burden on such imports to around 4%, compared to the earlier 1% final GST structure.

If approved, the change is expected to lower import landing costs for essential medicines, ease pressure on pharmaceutical supply chains, and help reduce prices for patients who rely on critical treatments.

In a separate initiative, authorities are also weighing restrictions on cash-based transactions at retail outlets, food businesses, and petrol stations. The goal is to encourage greater use of digital payment systems and expand the formal banking network.

Policy makers believe that reducing reliance on cash could improve transaction transparency, widen tax compliance, and strengthen the country’s broader digital financial infrastructure.