Finance Ministry clarifies on service tax on healthcare

Playing down the buzz in social media, the government made it clear that there is no proposal in 2017-18 Budget to levy 5 percent service tax on healthcare services.

"The central government has clarified that there is no proposal in the Union Budget 2017-18 to levy 5 percent service tax on healthcare services, as reported in certain social media circles," a Finance Ministry statement said.

The clarification follows a tweet claiming that the government has imposed service tax on healthcare.

The proposal to levy service tax of 5 percent on all healthcare services was mooted in 2011-12 Budget, but was dropped after stiff opposition.