Patients will now have to pay more for treatment in big private hospitals and getting their medical tests done in diagnostic centers as the government has brought these under the service tax net.
All private air-conditioned hospitals having more than 25 beds will now attract 5% services tax.
The burden will be on 75- 80% of patients in India who still don’t have health insurance cover and pay from their pockets for their treatment. For instance, a patient running hospitalization bill of Rs 20,000 having to fork out Rs 1,000 extra or 5% as tax to the government.
All private air-conditioned hospitals having more than 25 beds will now attract 5% services tax.
The burden will be on 75- 80% of patients in India who still don’t have health insurance cover and pay from their pockets for their treatment. For instance, a patient running hospitalization bill of Rs 20,000 having to fork out Rs 1,000 extra or 5% as tax to the government.
Similarly, patients will also have to pay 5% more for medical tests in diagnostic centers. This means, a diabetes patient who pays anywhere between Rs 60-100 for a routine monthly blood test will need to shell out as much as Rs 60 more in a year.
The tax on diagnosis is detrimental to preventive healthcare and early diagnosis which is the key to address the mounting burden of chronic non-communicable diseases, estimated to cost India $237 billion in national income over the next 10 years.
Hospitals air-conditioning is used primarily to control infections, unlike in hotels where it is used for comfort. This (tax on air-conditioned hospitals) is a retrograde step for the industry.
No comments:
Post a Comment