25-30pc sales tax on essential healthcare products assailed

ISLAMABAD: The Healthcare Devices Association of Pakistan (HDAP) expresses profound concern and frustration on behalf of patients, healthcare providers, and stakeholders nationwide regarding recent government decisions.

The imposition of a 25-30% sales tax on essential healthcare products, including cardiac equipment, dialysis machinery, and diagnostic kits, alongside the removal of tax exemptions for charitable hospitals (GST exemptions from the Sixth Schedule and Sr No 112/120), threatens to escalate healthcare costs dramatically.

“The imposition of this hefty sales tax on essential healthcare products is a devastating blow to our healthcare system. It threatens to make vital medical treatments unaffordable for millions of Pakistanis, particularly those from low-income families”, said Masood Ahmed, Chairman, Healthcare Devices Association of Pakistan (HDAP).

This cold-hearted policy change will disproportionately affect vulnerable populations who rely on affordable healthcare to survive. Charitable hospitals, already operating on tight budgets, now face a minimum 30% increase in costs, potentially forcing them to reduce services or even close down, depriving patients of life-saving treatments.

The consequences of these decisions are dire. Prices for essential diagnostic tests and treatments for diseases such as cancer, hepatitis, and heart conditions are set to skyrocket, rendering them unaffordable for the majority of Pakistanis. Public hospitals, already strained, will struggle under increased financial pressure, limiting their capacity to serve patients effectively. Middle and low-income families will bear the brunt of rising private healthcare costs, potentially delaying or foregoing necessary treatments, leading to exacerbated health issues and higher long-term expenses.

The HDAP emphasizes that healthcare is a fundamental right, and this policy shift represents a profound injustice to the people of Pakistan. It is imperative that the government takes immediate action to reverse these damaging policies. Specifically, we urge the restoration of tax exemptions for charitable hospitals and a reconsideration of the sales tax on healthcare products, ensuring a balanced approach that supports both healthcare providers and patients.

“We urgently call on the government to reverse these harmful policies. Restoring tax exemptions for charitable hospitals and reconsidering the sales tax on healthcare products is essential to ensure that all Pakistanis have access to the medical care they need,” Chairman HDAP further added.

The HDAP calls upon the government to prioritize the health and well-being of its citizens and respond swiftly to rectify this crisis before irreparable harm is done. The stakes are high, and failure to act decisively could result in a humanitarian catastrophe affecting millions across the country.

Copyright Business Recorder, 2024