Senate panel backs to end tax exemption for charitable hospitals

ISLAMABAD: The Standing Standing Committee on Finance has backed the proposal to do away with the tax exemption for charitable and trust-based hospitals.

Senator Saleem Mandviwala chaired the meeting of the Senate Standing Committee on Finance.

The committee members supported the abolition of the sale tax exemption for charitable and welfare hospitals.

Senator Mandviwala mentioned that a trustee hospital did not hand over the body of a person to the heirs until a bill of Rs2 million was paid.

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Senator Farooq H Naik said that trust hospitals also appoint doctors who charge exorbitant fee, and their laboratories charge high fee in the name of the trust.

During the meeting, officials from the Federal Board of Revenue (FBR) stated that government hospitals are paying sales tax, but large private hospitals are not.

They informed the committee members that the country’s major and expensive hospitals are based on trusts, which is why the tax exemption is now being removed.

Meanwhile, the Senate Standing Committee on Finance summoned Finance Minister Muhammad Aurangzeb for a briefing.

The chairman of the Standing Committee said that the finance minister had allocated time at 5 pm.

Senator Naik said that the committee is finalising its recommendations, and the finance minister should be present.

He said another committee meeting for the finance minister was un-called for and he should be summoned for the meeting right now.

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