This Article is From Jan 20, 2016

Sickening For Bengaluru: A Luxury Tax For Intensive Care Stay

The hospitals point out that ICUs are air-conditioned not for luxury but to ensure sterile conditions.

Bengaluru: If you're in hospital in Bengaluru, this is unlikely to help you recover.

Patients being treated in the Intensive Care Unit of any hospital where the nightly charge is more than Rs 1,000 (pretty much most hospitals) could soon have to pay an extra 8 per cent as luxury tax.

The rationale offered by the government is that rules make the luxury tax applicable to rooms with an Air Conditioner.

"In the Karnataka tax law, there it has a sub-section called Luxury Act for hospitals in which it says any room which is more than Rs 1000 which has got an AC, television, attender bed and such facilities should be subjected to 8 per cent. It is not a new law. But always the understanding was - the ICU is not a luxury place," said Dr Nagendra Swamy, President of the Private Hospitals Association said.
 

The hospitals point out that ICUs are air-conditioned not for luxury but to ensure sterile conditions. So far, they have not passed on the new fee to patients and plan to appeal formally to the government to reconsider.

An estimate puts the potential additional revenue from the state at nearly 20 crores per year.

"It has been brought to my notice. I will look into it and examine it," said Chief Minister Siddaramiah of the Congress to reporters today.

"Entertainment tax in hotels, restaurants - fine. People go there to enjoy themselves. But nobody goes to hospitals for pleasure. Nobody wants to go there," said Prakash, a resident of the city.  

A woman patient leaving hospital said, "The government should understand that a person is battling for life in an ICU. 8 per cent is too much, 1 per cent is still okay."
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