HomeHealthSenate backs proposal to end tax break for charitable hospitals | Vopbuzz.com

Senate backs proposal to end tax break for charitable hospitals | Vopbuzz.com

The Senate Standing Committee on Finance has backed a proposal to scrap tax exemptions given to charitable and trust hospitals in Pakistan.

The Senate body, chaired by PPP Senator Salim Mandviwala, met to discuss the issue of sales tax in charitable hospitals. The committee advocated abolishing the sales tax exemption in these medical institutions.

Federal Board of Revenue (FBR) officials told the committee that government hospitals currently pay sales tax, while large and expensive private hospitals run on trust basis are exempted.

Senator Farooq H. Naik pointed out that hospitals run by trusts have doctors who charge high fees from patients.

He added that the labs also charge hefty fees on behalf of the trusts.

Salim Mandviwala pointed out a case where a hospital run by a trust did not release the body of a deceased person until a bill of Rs 2 lakh was paid.

He stressed the need for an audit of these hospitals if the government continues to provide tax breaks.

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