No proposal to levy service tax on healthcare services, says government

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The government has made it clear that there is no proposal in 2017-18 Budget to levy 5 per cent service tax on healthcare services
The government has made it clear that there is no proposal in 2017-18 Budget to levy 5 per cent service tax on healthcare services

Playing down the buzz in social media, the government on Monday made it clear that there is no proposal in 2017-18 Budget to levy 5 per cent service tax on healthcare services.

HIGHLIGHTS

  1. The government has made it clear that there is no proposal in 2017-18 Budget to levy 5 per cent service tax on healthcare services
  2. The proposal to levy service tax of 5 per cent on all healthcare services was mooted in 2011-12 Budget, but was dropped after stiff opposition

“The central government has clarified that there is no proposal in the Union Budget 2017-18 to levy 5 per cent service tax on healthcare services, as reported in certain social media circles,” a finance ministry statement said.

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The clarification follows a tweet claiming that the government has imposed service tax on healthcare.
The proposal to levy service tax of 5 per cent on all healthcare services was mooted in 2011-12 Budget, but was dropped after stiff opposition.