PMA against removal of GST exemption for charitable hospitals

KARACHI: The Pakistan Medical Association (PMA) has voiced deep concern over the federal government's proposal to remove the sales tax exemption for charitable hospitals in the Finance Bill 2024-25, saying it will significantly increase the cost of providing healthcare services to the poor and underserved segments that depend on such facilities.
"At a time when access to affordable healthcare is more crucial than ever, this policy change will impose an undue burden on charitable hospitals, making it harder for them to fulfill their mission," the PMA stated.
It says that charitable hospitals play a critical role in communities across the country, providing care to patients regardless of their ability to pay. 
The association argues that the sales tax exemption helps these organizations keep costs down, enabling them to reinvest resources into patient care, community outreach, and other programs that benefit the public good.
Removing this exemption, it warns, will force charitable hospitals to divert funds away from direct patient services in order to cover additional taxes, ultimately reducing access to care for the most vulnerable members of society.
The PMA has called on the federal government to reconsider this proposal and maintain the sales tax exemption for charitable hospitals as it is essential to ensure that quality, affordable healthcare remains accessible to all, regardless of economic circumstances.