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Budget 2024 - 25 | Donation Hospital par bhi Tax? Expert Analysis

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00:00There are taxes on the Khairati Hospital as well.
00:03The items being used at the Khairati Hospital,
00:07there used to be 0% tax, but now it has increased to 18%.
00:11There are syringes, tax trinkets, medical tubes, and other things being used there.
00:17And this is very surprising. This is the first time this has happened.
00:19We have with us the tax expert, Mr. Arshad Shehzad.
00:23We know from him that these charitable hospitals...
00:28It's not 18%, it's 22-23%.
00:30Okay, so there are different slabs, Mr. Shehzad.
00:33You know that from Mr. Arshad Shehzad.
00:36Mr. Arshad, can you hear me?
00:37Yes, I can hear you.
00:38Okay, please explain a little.
00:40This is a new thing, an unprecedented move from the current government.
00:46Because in the past, we have seen that
00:47charitable organisations are supported,
00:49subsidies are given, money is kept from different funds.
00:53Now, they are taking money from them as well.
00:55What is this?
00:56This is not unprecedented.
00:58Unfortunately, in 2022,
01:01the budget that came,
01:03they withdrew the entry exemption there as well.
01:07But in 6 months, the government realised
01:09and gave representation to all the hospitals and charitable institutions.
01:13After that, the government restored this entry.
01:16So, similar, I think, while making the budget,
01:19what they did last time in 2022,
01:23again, entry number 166 is in Schedule 6.
01:26Schedule 6 basically deals with the exemption of sales tax.
01:30And the items in this schedule are exempt.
01:33So, this entry is actually like this,
01:35that if you supply to a charitable hospital,
01:38and it is more than 50 beds,
01:40then the supplies were not taxed.
01:42Now, if this entry exemption is omitted,
01:46then all the supplies, as you said,
01:48whether it is syringes, x-rays, machines,
01:51or their equipment,
01:53whether it is instruments or consumables,
01:55all kinds of supplies will be taxable.
01:57So, definitely, charitable hospitals,
01:59you know that in Pakistan,
02:01the government is not able to support the health sector
02:06in the way that a government should.
02:07And in Pakistan, luckily or fortunately,
02:09there are some affluent classes here
02:12who are providing the same services in the future.
02:16Now, they already run on donations, charity, and Zakat, etc.
02:21And if their cost is increased and indirect tax is imposed,
02:25then this is a big mistake.
02:27Okay, tell me one thing, that...
02:29No, no, Mr. Shehzad.
02:30Yes, Mr. Nachez, I will come to you.
02:32Mr. Shehzad, one thing to know is that...
02:36Well, it was not there before, now it is there.
02:38How much increase are you seeing in the percentage
02:42in the expenses of a common hospital?
02:45Suppose, a hospital is charging Rs. 100 before this,
02:48and if these taxes were imposed,
02:50then how much money will increase after that?
02:52And I was seeing that during our press conference,
02:55our finance minister was saying that
02:56the affluent classes should move forward,
02:59they should give money to schools and hospitals.
03:02These are the things that are involved in this.
03:03Now, no taxes have been imposed on that as well.
03:05Yes.
03:06Look, in any hospital, there are two types of expenses.
03:10One is administrative expense,
03:12there are salaries,
03:13or the requirement is that there are consumable items
03:17that are used with the patients in the treatment.
03:20So, if you take out the administrative expense,
03:23then 60-70% of the cost,
03:2518% tax has been imposed on that.
03:27Mr. Chaudhary, let me ask Mr. Chaudhary.
03:29Respected, you are absolutely right.
03:32What I have understood is that this tax that has been imposed,
03:36and increased, and increased a lot,
03:38this is a program to kill the patients.
03:42It is amazing.
03:43Instead of these people, they are already dying.
03:45In the hands of inflation, unemployment,
03:47in the hands of disorder,
03:49nothing of yours is right.
03:52After that, if a patient is taken away,
03:54he has gone to the doctor,
03:55and the patient has also gone.
03:57What will happen to the hospital?
03:58All that load will be transferred to the common people.
04:01Isn't it?
04:02Absolutely, sir.
04:03It has to be passed on.
04:04This is a sales tax.
04:05Sales tax is an indirect tax.
04:06So, in any case, it has to be passed on.
04:08The patient's cost has to increase.
04:10Absolutely right.

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