IN PARLIAMENT on Jan 21, Health Minister Khaw Boon Wan cited the 2percentage point increase in the goods and services tax (GST) as one of the reasons for rising medical bills ('Health-care costs jumped 6.2% last year'; ST Jan 22).
Indeed, the GST inflates hospital fees and the prices of medicine the sick pay. This brings up the question: Why impose the levy on medical bills?
No one wants to be ill but, sadly, no one is immune to diseases, regardless of the precautions one takes. Therefore, to be taxed for being sick is an unkind cut.
The tax can be very painful if one's medical bills are high. For example, a relative of mine, who was hospitalised recently, had to pay a hefty $500 in GST!
The Government should lessen the pangs by exempting hospital fees and medicine from the GST. It can go further by also exempting all medical-related equipment that hospitals and clinics buy, thereby enabling them to reduce the fees they charge patients.
The move is timely with the rising health-care costs. I do not think the Government will be out of pocket. After all, it netted an additional $990million in tax revenue last year from the increase in GST.
