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HindustanTimes Thu,18 Sep 2014

IMA wants relief in property tax

HT Correspondent, Hindustan Times  Ludhiana, November 29, 2013
First Published: 20:18 IST(29/11/2013) | Last Updated: 20:20 IST(29/11/2013)

Appreciating the government's decision to reduce property tax on collector rate to 75% for industry, the Indian Medical Association Punjab demanded the government to give same relief in property tax to the hospitals, nursing homes as well as clinics.

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IMA Punjab president, Dr Manoj Sobti said the hospitals, nursing homes and clinics are also an industry as per the Supreme Court ruling in 1978.

“The word industry has been defined in Section 2(j) of the Industrial Disputes Act, 1947. This Section has been interpreted by a seven judge bench of the Supreme Court in a 1978 case commonly referred to as the Bangalore Water Supply case. As per that interpretation, hospitals should come under the ambit of the term industry. That judgment continues to be the law so far”, he said.

“Patients from foreign countries are also coming to Punjab to avail good medical facilities at lower prices, with this the Punjab government is generating high income VAT taxes from this industry,” he added.

According to the IMA, if the government would charge high property tax then the price of medical care would also rise.

Dr Manoj Sobti said IMA Punjab requested the government to sympathetically consider this demand of the doctors that the nursing homes, hospitals and clinics should be considered as an industry and property tax should be charged as per this clause.

IMA Punjab also requested cabinet minister Anil Joshi to look into this matter and consider hospitals as industry.

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