(Web Desk) — The federal government has introduced a sales tax on over 200 medical devices, including essential equipment for procedures such as angiography and angioplasty, as well as diagnostic kits for various diseases.

This new tax, part of the 2024-25 fiscal budget, is expected to significantly impact the affordability of healthcare, especially for poorer patients.

Experts warn that this unprecedented sales tax on the diagnosis and treatment of diseases will increase healthcare costs by 25% to 30%. The tax will also severely affect the budgets of public hospitals, leading to a notable reduction in routine operations, angiographies, and angioplasties. The poor and middle classes who rely on private hospitals will be directly affected by the higher costs.

Masood Ahmed, Chairman of the Healthcare Devices Association of Pakistan, stated that the federal government has imposed a sales tax on all imported medical devices and diagnostic kits. The association has written to the Prime Minister and Finance Minister, requesting the removal of the sales tax, warning that it will make treatment unaffordable for the poor in private hospitals.

Dr. Syed Junaid Ali Shah, former provincial health minister and President of the Private Hospitals and Clinics Association, highlighted that the 15% sales tax on diagnostic kits will severely burden patients, especially the poor. In an emergency meeting, the association demanded that healthcare providers be granted industry status, arguing that healthcare is a necessity, not a luxury.

Additionally, the Sindh government has introduced a 15% tax on medical services, further adding to the financial burden on patients who predominantly rely on private healthcare providers. This move has sparked condemnation from doctors’ organizations, educationists, and economists, who argue that such measures could hinder investment in human capital.