Md Joynal Abedin Khan
With a view to decentralise health services in the country, Finance Minister AHM Mustafa Kamal has proposed a complete 10-year tax holiday from 2021-22 fiscal year for investors constructing 250-bed hospitals outside four major city areas.
The exemption on corporate tax will be applicable to new investment in both general and specialised hospitals to be established outside Dhaka, Chattogram, Gazipur and Narayanganj district.
The minister made the proposal while placing his Tk 6,03,681 crore proposed budget for the 2021-22 fiscal year, before the parliament on Thursday.
Tax exemption will be applicable from the date of starting commercial operation by investors.
The minister in his proposed budget offered the full waiver from payment of taxes to attract investment in healthcare services outside city areas, while all hospitals currently have to pay corporate tax at a rate of 32.5 per cent on their annual income.
“The incumbent government is sincerely promise-bound to ensure standard health care facilities at an affordable cost for each and every citizen of the country with a view to achieving the sustainable development goals. But the standard of sed health services has also improved substantially. However, the role of the private entrepreneurs in this sector is extremely city-centric,” the minister said in his budget speech.
Therefore, along with government initiatives, to make standard health services provided by private initiatives available in districts other than Dhaka, Narayanganj, Gazipur and Chattogram, he said.
“I propose to offer tax incentives to the health sector. In this connection, I propose to offer tax exemption, subject to certain conditions, to general hospitals with a minimum of 250 bed capacity and having child and infant care, women and mother care, oncology, wellbeing and preventive medicine units, and also to specialised hospitals with a minimum of 200 -bed capacity for ten years. These hospitals are to be established in districts other than Dhaka, Narayanganj, Gazipur and Chittagong,” he added.
The minister said the budget proposal for FY2021-22 outlines measures to save lives and create more jobs so that people can cope with the fallout of Covid-19 pandemic.
