Healthcare needs more than rollback

Victory for people, now press for more public spending

sonal

Sonal Matharu | March 22, 2011



Finance minister Pranab Mukherjee on Tuesday announced a rollback of the five percent service tax on healthcare which was proposed in this year’s budget.

The budget had proposed that a five percent service tax will be charged on the services offered by private, centrally air-conditioned hospitals with more than 25 beds strength and on all diagnostic centres. The healthcare sector was up in arms against this tax which many said would burn a deeper hole in the pockets of the sick.

The doctors who vigorously spoke against the obnoxious step by the government to tax the sick are overwhelmed by the unity shown by the entire medical fraternity in convincing the government not to go ahead with the implementation of the tax.
 
India is heavily dependent on the private sector for healthcare with almost 80 percent of the needs met by the private hospitals. With less than one percent insurance coverage in India, most of the expenses on medical treatments incurred by the people are out-of-pocket.

The five percent service tax would have been added in the medical bills of the patients who would go to a private hospital not out of choice but out of need, given the crippling public health infrastructure in the country. The patient would have had to shell out more for even a simple medical procedure or diagnostic as hospitals and diagnostic centres cannot operate without air-conditioning.

Civil society has been making noise for long about the long neglected issues of healthcare like the meager public spending on health and quality concerns at private hospitals, including the corporate hospitals.

Instead of regulating the unorganised public and private hospitals and other clinical establishments, the government decided to make money out of a patient’s misery. Expensive medical treatments are already unaffordable for many and the new tax would have further shot up the healthcare expenditure.

If the idea was to tax the corporate hospitals in India, it should have been clearly spelt out. There should be regular checks to make sure the free beds the private hospitals are obliged to provide to poor patients are occupied and that the hospitals do not refuse treatment to those who cannot pay. The government should also stop handing over land to corporate hospitals at highly subsidised prices as these hospitals, once ready, run like any money-making business entity and make huge profits.

However, the government cannot ignore the distressed migration to the private healthcare sector in India. Keeping the larger interest of the sick who seek treatment at private hospitals, it’s a great relief for all that the tax has been rolled back.

Comments

 

Other News

Are EVs empowering India`s Green Transition?

Against the backdrop of the $3.5 billion Production-Linked Incentive (PLI) scheme launched by the Government of India, sales of Electric Vehicles (EVs) are expected to grow at a CAGR of 35% by 2032. It is crucial to take into account the fact that 86% of EV sales in India were under the price bracket of $2

When Nandini Satpathy told Biju Patnaik: ‘I’ll sit on the chair you are sitting on’

Nandini Satpathy: The Iron Lady of Orissa By Pallavi Rebbapragada Simon and Schuster India, 321 pages, Rs 765

Elections 2024: 1,351 candidates in fray for Phase 3

As many as 1,351 candidates from 12 states /UTs are contesting elections in Phase 3 of Lok Sabha Elections 2024. The number includes eight contesting candidates for the adjourned poll in 29-Betul (ST) PC of Madhya Pradesh. Additionally, one candidate from Surat PC in Gujarat has been elected unopp

2023-24 net direct tax collections exceed budget estimates by 7.40%

The provisional figures of direct tax collections for the financial year 2023-24 show that net collections are at Rs. 19.58 lakh crore, 17.70% more than Rs. 16.64 lakh crore in 2022-23. The Budget Estimates (BE) for Direct Tax revenue in the Union Budget for FY 2023-24 were fixed at Rs. 18.

‘World’s biggest festival of democracy’ begins

The much-awaited General Elections of 2024, billed as the world’s biggest festival of democracy, began on Friday with Phase 1 of polling in 102 Parliamentary Constituencies (the highest among all seven phases) in 21 States/ UTs and 92 Assembly Constituencies in the State Assembly Elections in Arunach

A sustainability warrior’s heartfelt stories of life’s fleeting moments

Fit In, Stand Out, Walk: Stories from a Pushed Away Hill By Shailini Sheth Amin Notion Press, Rs 399

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter