March 7, 2011

Budget-5 %service tax on Health-care:
               The Budget 2011 has slapped a 5% service tax on healthcare - latest addition to tax -rich India.With the tax to be levied from doctors of  private healthcare centres and clinics seems to make affordable medical treatment beyond reach for common people.It seems Governments plan is to get a share from huge profits that private hospitals earn by selling healthcare.But the Government have forget that common people - especially middle class are relying on private hospitals.Tax is imposed on hospitals with 25beds or more ,consultant doctors and diagnostic centres ...pushing medical bills of middle class out of reach.

India's Health-care sector:
          Government of India spending on Medical care is very less when compared to Othelia developing countries.Government spends roughly about 1% of GDP on Health-care .....Its less than many under developed countries in Africa.The recent levy of 5% tax has just worsened the scenario ...the government should not forget service tax that is to be collected from private hospitals will eventually imposed common people who visit the hospital for treatments.India has got just 90 beds per 1lakh people ...the world average is 270 beds.The number of doctors and nurses per lakh people is bizarre just 60 doctors and 130 nurses.The government should take immediate steps to introduce more medical colleges to increase the number of doctors and nurses.
Rise is Medical bills : 
      Few months back in Hyderabad when I went to a private hospital to check my Fever , I had to pay 500Rs as fees.I wonder how the fee will increase after the tax imposed.This hospital is visited by middle class people rather than the rich India.In my village in Kanyakumari a private hospital Doctor gets a fee of about 50 rupees for a single meet ...the hospital is visited by common people both poor and middle class...the hospital does have more than 50 beds and it may also have to pay the service tax.The government may ask why to go to Private hospitals paying fee when Government hospitals get you free treatments,But Government hospitals are poorly resourced...and lacks basic amenities.The Government has also slashed funds for controlling various diseases like malaria ,TB and cancer....

Health Care need to seen as a critical sector which needs urgent attention and developments ....more investments need to be introduced ...Its important that government reduce burden on common people and slash the service tax on Health care ......what do you think ...comment your views on the tax imposed......

3 comments :

Harsha said...

Why does the budget increase burden on common people, when it should be reduced remember that indians are the highest tax paying people.

tanishkar said...

Thank you for the info. It sounds pretty user friendly. I guess I’ll pick one up for fun. thank u.

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