Tamil Nadu   

"Drop plan to introduce service tax in medical sector"

Staff Reporter

TUTICORIN: The Centre should drop the move to introduce service tax of 10-12 percent in the medical sector, since it will entail a burden on the poor, G. Raghavelu, State president of the Indian Medical Association, has said.

At the association's State council meeting held here on Sunday, he said taxation on medical services would have a cascading effect, given that 80 per cent of the outpatients and 60 per cent of the inpatients were treated at private clinics every year.

"Moreover, the Government allocates just 1.23 per cent of the plan outlay every fiscal to the medical services sector, much below the World Health Organisation norm of 12 per cent," he said. "The introduction of service tax would thus stunt the growth of medical care."

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