NATHEALTH Calls For Raising Health Expenditure To 2.5 Per Cent Of GDP In Budget

The body suggested adding a ‘national priority’ status to healthcare to provide better financing options and tax incentives benefits to the private sector and bring in more investment for the sector

The body called for implementation of a uniform 5 per cent tax rate in GST across the healthcare industry. (Image Source: Unsplash)

Source : Unsplash

NATHEALTH on Tuesday called on the government to increase public health expenditure to more than 2.5 per cent of the GDP and implement a uniform rate of GST in healthcare.

The healthcare industry body shared some recommendations for the upcoming Budget and urged the authorities to implement measures that help strengthen the healthcare infrastructure and also make investments to solve challenges regarding demand and supply in the sector, reported PTI. The body called for implementation of a uniform 5 per cent tax rate in GST across the healthcare industry. 

Abhay Soi, President, NATHEALTH, said, “India has made significant strides toward becoming a global healthcare powerhouse and this has substantially contributed to GDP and job creation. As the nation progresses toward achieving a USD 5 trillion economy, providing quality healthcare for the entire population is a prerequisite. Addressing healthcare challenges will require an estimated 2 billion square feet of advanced healthcare infrastructure.”

Soi, Chairman and MD, Max Healthcare Institute, stressed that in order to cater to the growing needs of the population, India will need to develop 2 billion square feet of healthcare infrastructure and raise the GDP spending on the sector to 2.5 per cent. This will help expand the services in the sector in Tier II and III cities and also develop digital health services.

Further, the industry body called for full input tax credibility for the sector. It also stressed the need to resolve the issue of unused MAT credits and review subsidy policies for MedTech to make healthcare accessible for all.

Notably, Finance Minister Nirmala Sitharaman is scheduled to reveal the Budget for the 2024-25 fiscal year (FY25) on July 23, 2024, in the Lok Sabha.

The body also suggested adding a ‘national priority’ status to healthcare to provide better financing options and tax incentives benefits to the private sector and bring in more investment for the sector. It also proposed hiking the acceptability of the Pradhan Mantri Jan Arogya Yojana (PMJAY) and the Central Government Health Scheme (CGHS) among the frontline care providers in the private sector.