Senate committee backs sales tax imposition on welfare hospitals

ISLAMABAD: The Senate Standing Committee on Finance, chaired by Senator Saleem Mandviwala, has endorsed the decision to remove sales tax exemptions from charitable and welfare hospitals.

During the meeting, concerns were raised about trust hospitals not settling bills and the financial practices of hospitals benefiting from tax exemptions. Senator Farooq H. Naik highlighted issues regarding high fees charged by doctors and laboratories associated with trust hospitals.

Officials from the Federal Board of Revenue (FBR) informed the committee that while government hospitals pay sales tax, major private hospitals currently enjoy tax exemptions despite their substantial operations.

The committee also summoned Finance Minister Muhammad Aurangzeb, emphasizing the need for government oversight in this matter.

Senator Naik reiterated the committee’s commitment to finalizing recommendations and called for the finance minister’s prompt attendance at future meetings
to address these critical taxation issues affecting healthcare services in the country.


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