Al Amin :
In a move that could significantly impact healthcare affordability for millions, the government of Bangladesh is considering imposing higher taxes on medical instruments and equipment.
NBR officials said the duty on import of medical equipment used in hospitals is likely to be increased to 10 per cent from the existing 1 per cent.
These medical instruments and equipment are currently exempt from duties and VAT.
This decision, slated to come into effect in the upcoming financial year, will shun away many middle class and poor people from the healthcare system due to the added cost, said experts.
Currently, these medical devices are exempt from duties and Value-Added Tax (VAT).
However, if the proposed hike is implemented, it is expected to substantially raise prices across a range of critical medical equipment, including those essential for complex surgeries, intensive care units (ICUs), life support, and anesthesia during surgery.
One particularly concerning consequence of this potential policy change is the escalation in the cost of treating various diseases, notably impacting kidney dialysis treatment.
Experts warn that the additional tax burden could render dialysis unaffordable for many patients, affecting an estimated 3.8 crore individuals suffering from kidney disease in the country.
Each year, approximately 40,000 to 50,000 people in Bangladesh experience kidney failure, and with 80 percent of these patients potentially unable to afford treatment due to increased costs, the ramifications could be dire.
Expressing deep concern over the proposed duty increase, AM Shamim, Managing Director of LabAid Group, emphasized the potential repercussions on the nation’s healthcare landscape.
He stated, “Medical expenses in the country will rise because of this government move. Those who can afford it will seek treatment abroad, which will exert pressure on foreign exchange reserves.
Currently, about five lakh people go abroad for medical treatment each year; this number could double to 10 lakh.”
Shamim further highlighted the impact on the cost of lifesaving treatments. “For instance, an angiogram at LabAid Hospital currently costs just $150, whereas the same test costs about $450 in Singapore.
With the increased duty, the cost of this essential test will also rise, making it unaffordable for many in the country.”
He urged the government to reconsider the duty increase on essential healthcare items and suggested imposing higher duties on luxury goods instead.
NBR officials noted that referral hospitals currently benefit from low tariffs on imported medical equipment but charge substantial fees for services.
The government aims to generate more revenue from this sector without further escalating treatment costs.
The zero-duty facility, introduced in 2005, required hospitals to treat 5 percent of their patients for free.
However, this condition was rarely met, leading the government to impose a 1 percent import duty in the fiscal year 2017.
To qualify as a referral hospital, institutions must meet several criteria: mono-disciplinary hospitals must have a minimum of 100 beds, while multi-disciplinary hospitals must have at least 150 beds.They must provide high-quality medical care that meets international standards, conduct research activities, and maintain and use modern medical equipment properly.
Currently, leading private hospitals in the country enjoy the benefits of the referral hospital facility for importing medical equipment from abroad.