The Senate Standing Committee on Finance has backed a proposal to end the tax exemptions granted to charitable and trust hospitals in Pakistan.
The Senate body under the chairmanship of PPP Senator Saleem Mandviwala convened to discuss the issue of sales tax on charitable hospitals. The committee advocated for the abolition of sales tax exemption on these healthcare facilities.
Officials from the Federal Board of Revenue (FBR) informed the committee that government hospitals are currently paying sales tax, while large and expensive private hospitals that are trust-based are exempt.
Senator Farooq H. Naik highlighted that hospitals operating under trusts house doctors who charge high fees from patients.
He added that laboraties too charge a hefty fee in the name of trusts.
Saleem Mandviwala pointed out an incident where a trust hospital failed to provide a deceased person’s body until a bill of Rs. 2 million was paid.
He stressed the need for audits of these hospitals if the government continues to grant tax exemptions.