Expressing “distress” over the proposed service tax on treatment in private hospitals and tests in diagnostics labs, Ficci today said the move would jeopardise preventive care and impact the rural population. Finance Minister Pranab Mukherjee in his budgetary proposals last Monday imposed 5 per cent service tax on treatment in private hospitals, paid either by individuals, insurance companies or firms.

The same levy would be applicable on diagnostic tests of all kinds. This will, however, not be applicable to government hospitals.

“…the move would compromise on quality and safety of healthcare delivery, jeopardize preventive care and impact the rural population adversely,” the chamber said.

It said that the tax would now deter hospitals to go for central air-conditioning

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  1. D K Agrawal says:

    Imposing of service tax on centrally AC hospitals is like pushing patient by foot by the government as there is no social security in India, most of the peoples can not afford heart & cancer treatment without the aid of their friends & relatives.Hope every Indian must be rich otherwise this democratic govt. will not allow treatment as it seems that Govt. thinks that treatment in pvt. hospitals is leisure and entertainment.

  2. CS Lucky Popli says:

    This is not in any way a fair deal for the republic of India.

    A Question for concern for the democratic Indians…

    On one hand the Ministry promotes HELTH & SAFETY and on the other hand they impose Service Tax on utilisation of the same.

    Whether the people taking the aid of Pvt hospitals are seeking it for their leisure & entertainment…? or the govt. wants to encourage & promote the Government run & maintained Hospitals whose services are better not to be taken position…??

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September 2021