Only Dhulikhel Hospital Receives VAT and Customs Exemptions, Over 200 Community Hospitals Nationwide Affected
June 26, Kathmandu – There are more than 200 community hospitals operating nationwide that are run on a non-profit basis. However, Finance Minister Dr. Swarnim Wagle announced in the upcoming fiscal year’s budget that tax exemptions will be granted to only one community hospital. In the budget for fiscal year 2083/84, Dhulikhel Hospital will receive both customs and VAT exemptions on imported construction materials, essential hospital operation materials, medical equipment, and instruments.
Previously, certain government and teaching hospitals were granted VAT and customs exemptions. These hospitals include the National Academy of Medical Sciences (Bir Hospital), Tribhuvan University Teaching Hospital, B.P. Koirala Memorial Cancer Hospital, B.P. Koirala Institute of Health Sciences, Shahid Gangalal National Heart Centre, and Manmohan Cardio-Thoracic Vascular and Transplant Center, where imported construction materials and equipment were exempt from customs and VAT. However, in this year’s budget, Dhulikhel Hospital has been added to the list of institutions eligible for tax exemptions.
According to the Economic Survey 2083, there are 420 hospitals across the country, with only seven hospitals currently receiving tax exemptions. A Ministry of Finance official stated that providing tax exemption to only one community hospital is unfair. Dhulikhel Hospital is registered under the Hospital Institution Registration Act of 2034 as an NGO. Data from the government indicates that more than 200 registered community hospitals are active nationwide.
“Selecting a single company or institution to grant tax exemption constitutes policy corruption,” the official said. “However, sometimes such decisions are influenced by access and impact.” While Finance Minister Dr. Wagle announced tax incentives to promote lens production at Tilganga Institute of Ophthalmology through the budget, the name Tilganga is not listed in the economic bill. Instead, Dhulikhel Hospital has been granted extensive tax exemptions without prior budgetary announcement.
