Increase in health care costs after the withdrawal of tax exemptions for medical equipment: Experts

M. Waqar Bhatti
Islamabad: As the government remains undecided on continuing the Sehat Sahulat program in federal areas, it has decided to withdraw exemptions for diagnostic kits, cardiac products including stents, catheters and dialysis equipment. The move will ultimately make health care more expensive, experts and health care industry representatives warned Saturday. The United States grants citizenship to 18,000 Pakistanis

Additionally, according to charity officials, all exemptions for hospitals and charities have been withdrawn, driving up medical costs by at least 25-30%.

“The Government has proposed to withdraw all general sales tax exemptions from the Sixth Schedule of the Sales Tax Act, 1990, serial numbers 112 and 120, which relate to the healthcare sector.

As a result, the cost of all cardiac devices and diagnostic purchases will increase by at least 25-30% and perhaps even more,” Masood Ahmed, chairman of the Health Care Device Association of Pakistan (HDAP), told The News.

He expressed regret that exemptions for all charitable health institutions had been withdrawn, resulting in a 30-40% increase in hospital and laboratory expenses. “Charity hospitals have limited budgets and the increase in government taxes means they will be able to treat 30% fewer patients,” he said.

According to Masood Ahmed, the cost of home diabetes test strips and laboratory tests for common infections, thalassemia, cancer, hepatitis, dengue and blood banking services will increase significantly, putting a greater financial burden on the people of Pakistan.

A senior cardiologist and head of the cardiology department told The News that the situation is still unclear, but there are many indications that the government has decided to withdraw sales tax exemptions for angioplasty and angiography products, including stents, catheters and sheaths. , wires, cardiac diagnostic equipment, guidewires and contrast lines.

“Similarly, it has been decided to impose a general tax on the sale of angiography accessories, pacemakers, devices used in the treatment of heart failure, including cables, connectors and accessories. They also proposed imposing a sales tax on electrophysiology products, including catheters, cables, connectors, laser systems, cardiac mapping systems and other products,” the HDAP chairman said, adding that this would result in at least a 25-30% increase in the cost of treating heart disease.

Urging the government to reconsider its decision, Masood Ahmed said: “Nowhere in the world do governments burden the healthcare sector and try to collect revenue from poor patients.”

A cardiologist who asked not to be named said that in Pakistan, hundreds of people experience heart attacks every day, and about 75% of them require stent implantation to save their lives. “Imposing a sales tax on heart care devices and products will make medical costs unaffordable for most Pakistanis,” he warned.

The government also proposed imposing a sales tax on cardiac surgical products, including oxygenators, cannulas, prosthetic heart valves, lumen valves and artificial limbs and devices.

“We have heard that they have also proposed to levy GST on cardiac angiography machines, echocardiographs and ETT machines, gamma cameras for nuclear cardiology, left ventricular assist devices (LVAD), MRI compatible cardiac monitors, infusion pumps and many other devices and equipment, ” he said, warning that this would ultimately increase the suffering of patients in Pakistan.

Renowned philanthropist and CEO of Indus Hospital & Health Network (IHHN), Prof. Dr. Abdul Bari Khan, said the government has also withdrawn sales tax exemptions for charitable organizations such as Indus Hospitals, which will increase the suffering of poor patients by limiting their ability to treat patients.

“At a time when donations are declining due to the economic meltdown, rolling back exemptions for health care charities is absurd. We share the burden of health care with the government, but if they withdraw waivers for us, it will be to the detriment of both the government and the people of Pakistan,” he added.

“For example, we now have to try to raise Rs 50. 1.25 billion instead of Rs. 1 billion due to the withdrawal of sales tax exemptions becoming more and more difficult every day. Ultimately, this will limit our ability to treat more people,” he maintained.

The owner of a large diagnostic service chain in Pakistan claimed that the government has also withdrawn exemptions for HIV, hepatitis B and C diagnostic kits, diabetes test strips, automatic cell separator kits for platelet collection and many other kits, reagents and equipment. He warned that this would significantly increase the cost of diagnostics in Pakistan.

“On the one hand, the government plans to test 10 million Pakistanis for viral hepatitis and hundreds of thousands for HIV, dengue, malaria, tuberculosis and other diseases. On the other hand, it makes diagnostics more expensive, which is unimaginable,” said the owner of the laboratory network.