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