GST must be reduced significantly across all products and services: Medica Superspeciality Hospital

21 January 2022 | Views

Gandharv Roy, COO, Medica Superspeciality Hospital

"Budget 2022-23 needs to address the low per capita spend ($3) on indigenous medical devices since there is a significant dearth in indigenous manufacturing, and imports constitute over a significant percentage of the high-end medical device market. A tax break for 10 years for setting up facilities in upcoming economic zones, MedTech Parks and MedTech Manufacturing facilities is one of the primary needs. The government should also look at an increase in customs duty of finished medical equipment/devices and a subsequent reduction in customs duty for components and SKD imports to promote ‘Make in India’. Reintroducing tax holidays for rural hospitals with the flexibility to select beneficial years and viability gap funding by the government will incentivise private healthcare infrastructure creation in Tier III & IV towns. GST must be reduced significantly across all products and services, to spur consumer spending. We expect the government to look at increasing the healthcare expenditure above 2.5 per cent of the GDP. We are expecting an announcement of a 10-12 per cent rise in healthcare expenditure which will enable the much-needed attention that healthcare requires now. Healthcare services must be brought under the GST regime with a 1 per cent levy so that they can avail the input credit available." 


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