Budget: IMA slams 5% service tax on healthcare
The Indian Medical Association has lashed out against the imposition of five per cent service tax on healthcare.
2 min read
The Indian Medical Association has lashed out against the imposition of five per cent service tax on healthcare.
Dr Devendra Shirole,national vice-president of IMA said,A levy of five per cent service tax on healthcare industry has hurt the sentiments of those in the health sector. This reminds us of the salt tax by the British Empire levied on the poor citizens of the country before Independence.
He said although health is a state subject and should be looked after by the government,70 per cent of the healthcare delivery system is being managed by the private sector.
Dr Vinay Aggarwal,national president,IMA,said the Finance Minister in the budget has proposed a health sector outlay of Rs 26,760 crore,a raise of 20 per cent over the previous year.
If we take inflation into account,it is almost the same as previous budget. An introduction of service tax on this sector will make it all the more difficult for the general public to afford healthcare which is already out of their reach due to various other taxes.
The Indian Medical Association has urged the government to scrap the five per cent service tax.
The healthcare sector was expecting a provision of starting new healthcare facilities in the general budget. However,there is no apparent mention or step to promote this,said Shirole.
Steps should be taken to check inflation in healthcare delivery mechanism and the state healthcare machinery should be strengthened to provide better services to the general public,he added.
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