Hyderabad High Court stays luxury tax on hospitals
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Telangana Private Hospitals and Nursing Homes Association (THANA), can heave a sigh of relief as a temporary stay by the Hyderabad High Court has given them some hope on the issue of 10% luxury tax on them.
The 2,500 members of THANA, including 1,200 city-based member hospitals were imposed to pay 10% luxury tax by the government.
The 10% luxury tax is proposed to be levied on all the hospitals , including a 25-bedded private hospital and a super-speciality hospital like Apollo or Continental. All the patients who seek special rooms besides those accessing air-conditioned and television facilities, will fall under this category.
HC has put a stay order till Feb 15. Even though a final solution has not been reached, the THANA members have since protested the move, as they feel that such a harsh financial decision will force many hospitals to shut down. Others will be forced to raise the cost of treating all infectious diseases.
As further implied by Dr B Narender Reddy, city president-elect of THANA, Hyderabad, this is an irrational move, making even the basic treatment for infectious diseases like swine flu, TB, chicken pox, measles are expensive, since they are required to be kept in isolated rooms.
The 2,500 members of THANA, including 1,200 city-based member hospitals were imposed to pay 10% luxury tax by the government.
The 10% luxury tax is proposed to be levied on all the hospitals , including a 25-bedded private hospital and a super-speciality hospital like Apollo or Continental. All the patients who seek special rooms besides those accessing air-conditioned and television facilities, will fall under this category.
HC has put a stay order till Feb 15. Even though a final solution has not been reached, the THANA members have since protested the move, as they feel that such a harsh financial decision will force many hospitals to shut down. Others will be forced to raise the cost of treating all infectious diseases.
As further implied by Dr B Narender Reddy, city president-elect of THANA, Hyderabad, this is an irrational move, making even the basic treatment for infectious diseases like swine flu, TB, chicken pox, measles are expensive, since they are required to be kept in isolated rooms.
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