VAT on doctors’ fees and charges to be removed from July 1 – Finance Minister

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Cabinet has decided to remove the 15% Value Added Tax (VAT) on doctors’ consultation fee, channeling fee and professional charges with effect from July 1, Finance Minister Mangala Samaraweera said. He stated that the request was made by the Minister of Health, Nutrition and Indigenous Medicine Dr. Rajitha Senaratne on the instruction of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe.

Speaking at a press conference in Colombo yesterday (19), the minister said that VAT was removed from OPD services in 2016, a decision he said was they took as a compassionate government. However, he said that the VAT charged on private hospital rooms will remain unchanged.

He also said that the government intends to increase the fund allocation for the health sector to 5% in the 2020 Budget.

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