Pranab Mukhejree withdraws “misery” healthcare tax

Union Finance Minister Pranab Mukhejree on Tuesday withdrew the 5 percent service tax on healthcare announced in his Budget, bringing relief to common people after it described as a “misery tax” by the healthcare groups.

“I have decided to exempt the new levy in its entirety,” said Pranab Mukherjee on the floor of the house and smilingly said “hope no one will describe it as misery tax” anymore.

He said it had raised considerable anxiety but it was not to raise revenue merely, but more in line with the goods and services taxes proposed.

The 5 per cent service tax on healthcare could have made medical expenses costlier for common people, especially cancer and cardiac patients and other terminally ill.

The provision of the tax in the General Budget had triggered protests by healthcare group and doctors like the eminent heart surgeon Dr Devi Shetty.

Shetty, who almost launched a nationwide campaign against the proposed levy, said he was happy.

“It is a great victory for the government. I am glad that the finance minister took a decision to roll back. The common people will benefit,” said Dr Devi Shetty reacting to the rollback.