Health Care Budget 2023: Union Finance Minister Nirmala Sitharaman is going to present the budget on February 1, 2023. In this budget, an increase in the budget of the Healthcare Tech industry is being expected. It is being told that there is a need to improve the entire system of health. The same Medical Technology Association of India (MTAI) has demanded reduction of custom duty on healthcare related equipment in the country and removal of health tax on them. Know what is the reason behind this, due to which the association has raised such a demand.
Demand to reduce customs duty
The healthcare tech world has demanded a reduction in customs duty on medical devices in Budget-2023. The Medical Technology Association of India has urged the Modi government at the Center to reduce customs duty on imported medical devices and remove health tax.
80 percent of the products are being imported
The association has informed that, companies related to medical technology in the country are importing 80 percent of medical equipment today. Pawan Chaudhary, President and Director General of the association, says that India is imposing the highest customs duty on medical devices in the world, and that directly affects the economic condition of the patients.
Budget preparation in full swing
“With preparations for the Union Budget 2023 going on in full swing, we expect reforms in customs duties and taxes levied on medical devices,” says Chowdhary. He added that the sector needs more attention in government expenditure. There is a need and one way to achieve this is by increasing public health expenditure to meet the existing gap in demand and supply of health care. He suggested that the government should take a step towards promoting the medical device sector globally. Separate budget allocation should be considered.
tax on medical equipment
Chaudhary said that this high customs duty has adversely affected the cost of medical equipment in India and it should be reduced to 2.5 per cent. Further, the 5 per cent health cess imposed on imported medical devices has substantially increased the burden on the industry, and should be removed.
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