Hospitals in Bangalore happy at reversal of service tax on healthcare

Hospitals across Bangalore have welcomed the Centre’s decision to reverse the 5% service tax on healthcare announced in the budget.

“I am grateful to the Union finance minister for agreeing to roll back this additional service tax,” said Dr Devi Prasad Shetty, chairman, Narayana Health City.

“Our government spends less than 1% of the gross domestic product on healthcare. About 47% of the rural population either borrow or sell off their assets to pay for healthcare,” he said.

“Until the government spends huge amount to develop infrastructure, people will be forced to buy healthcare. In all developed countries, the government pays for primary, secondary and tertiary healthcare,” said Shetty.

Dr H Paramesh, president Private Hospitals and Nursing Homes’ Association said, “We are extremely happy that the government has ruled out service tax on healthcare sector, thereby not burdening the patients and their family members.

“The effort of every individual organisation and academic institute that has fought for withdrawing this tax has shown positive results. The State Paediatric Association, Indian Medical Council and Karnataka Private Hospitals and Nursing Homes Association had all written letters to the finance minister, appealing to roll back the service tax on healthcare,” he said.

“The common man would have been overly burdened with such kind of tax. The finance minister has done a service to humanity by reversing his announcement,” said Dr Umapathy Panyaala, chief operating officer, Apollo Hospital.