VAT on private hospitals to be removed | Sunday Observer

VAT on private hospitals to be removed

Value Added Tax (VAT) on consultancy fees and other fees in private sector hospitals will be removed next week, Minister of Finance and Mass Media, Mangala Samaraweera told guests at an event held to pay compensation to the 2017 flood affected, in Matara yesterday.

“This will be in effect be a part of the public welfare programme of the Good Governance program,” the Minister said.

Speaking to Sunday Observer, Director of Information of the

Ministry of Finance and Mass Media, M. Ali Hassen said the

proposal to remove VAT on private hospital patients will be handed to the Cabinet on Tuesday, June 19, by the Finance

Minister, on the request of Minister of Health, Nutrition and Indigenous Medicine, Dr. Rajitha Senaratne.

“This will do away the VAT imposed on consultancy fees and other fees that affects patients,” Hassen said.

Director General of Health Services, Dr. Anil Jasinghe commended the plans to remove the tax saying, “It is a good move”, since the 15 per cent VAT passes down to the patients. He said the responsibility also lies with the private healthcare sector to reduce charges accordingly. 

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