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15% VAT on channelling fees, surgeries to be removed

19 June 2018 05:12 pm - 10     - {{hitsCtrl.values.hits}}

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The Cabinet today approved to remove the 15% Value Added Tax (VAT) imposed on doctor’s fees, channelling fees and on surgeries at private hospitals with effect from July 1, Finance Minister Mangala Samaraweera said.

However, he said the tax on in-house medical charges would remain unchanged because they believed that if a patient could afford to obtain in-house medical care, then that patient is also capable of paying the tax.

Addressing a news briefing held at the Finance Ministry, Minister Samaraweera said, as a sensitive government, they realised that the 15% tax increase on health services at private hospitals was a burden to the people.

“The VAT increase came into effect from January 1, 2016. As an initial measure, Out-Patient Department (OPD) services were exempted from the tax increase. As a sensitive government, we understood that the average citizen also needs to make use of the facilities offered by private hospitals and that the taxes that were being charged was a big burden to them. Therefore, we removed the tax on a request made by Health Minister Rajitha Senaratne and on the instructions of the President and Prime Minister,” he said. (Lahiru Pothmulla)

Pix by Pradeep Pathirana

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  Comments - 10

See Kapruka's top selling online shopping categories such as Toys, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.
  • Ahmed Tuesday, 19 June 2018 07:15 PM

    maybe now they can increase the channeling fees to fill the gap

    karthik Tuesday, 19 June 2018 07:58 PM

    Realization come very late in life.

    Vila Tuesday, 19 June 2018 08:10 PM

    The VAT must have been imposed during MR time. I didn't read newspapers lately

    Ceylon Tuesday, 19 June 2018 08:21 PM

    Tax tax tax.posible and imposible to collect all kind of taxess.these fools are killing people with taxess and no wonder people dont pay tax.tax cheating people and people cheating tax.introduce only one tax.easy to collect and easy to pay.

    Saradiel Tuesday, 19 June 2018 08:45 PM

    Good move. Will reduce the burden on patients to some extent. Hope there will be more to follow.

    zarth Tuesday, 19 June 2018 11:57 PM

    This is another joke!!! They introduced the VAT to cover up for their inefficiencies and corrupt practices and when they correct the mistake, ( at least partially as it is still imposed on ROOM CHARGES) these fools expect us to stand up and applaud. Bloody idiots t say the least!!!

    wiseman Wednesday, 20 June 2018 12:24 AM

    The big question is will this be passed on to the patients ?

    Saman Wednesday, 20 June 2018 05:33 AM

    SL should look at reforming and remodelling both the Healthcare and Education system as a whole. All citizens should declare their taxable income so that the needy can be protected by government funded healthcare and education system depending on their taxable income. The current systems simply don't work because they are not financially viable.

    Viktor Wednesday, 20 June 2018 07:14 AM

    It is obvious that the problem the doctors have is not with the VAT itself but the record that VAT provides which can be used by Income Tax to find out the hidden real PP income of these doctors. Government shoud have called the doctor's bluff of not doing PP

    Brainmaster Wednesday, 20 June 2018 12:08 PM

    Keep an eye on the payment of income tax of all doctors and you can recover all the lost VAT. via DM Android App


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