This refers to “The public option” by T N Ninan and “Why service tax on high-end health care must not be rolled back” (March 12). Health care is a non-discretionary expenditure. The proposed tax is unequal in terms of its effect. For the very rich, it doesn’t matter at all. For the middle and lower-middle classes, the tax will constitute a significant percentage of their income. A tax should be simple to administer, encourage compliance and be just. None of this applies to the service tax on high-end health care. Also, it is unfair to compare India with Europe and Japan; their health care systems did not improve just because they introduced service tax.
Akkineni Ramesh, on email
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