June 13, 2012
Municipality-owned hospitals in Japan paid an average of 121.4 million yen per hospital in consumption tax in the FY 2010, reveals a survey conducted by the Japan Municipal Hospital Association comprising 926 hospitals.
The survey also shows that the amount paid for the consumption tax at municipal hospitals with a capacity of more than 500 beds exceeded 300 million yen a year.
The survey results show that even the present 5% rate in the consumption tax is pressing hospital management. An increase in the tax to 10% will definitely throw hospital operators into more difficulties.
Currently, medical services are exempt from the consumption tax while medicines, medical equipment, medical- and nursing-care goods, and hospital meal materials are taxable.
Some call for medicines and medical materials to be zero-rated if purchased by medial institutions.
The survey also shows that the amount paid for the consumption tax at municipal hospitals with a capacity of more than 500 beds exceeded 300 million yen a year.
The survey results show that even the present 5% rate in the consumption tax is pressing hospital management. An increase in the tax to 10% will definitely throw hospital operators into more difficulties.
Currently, medical services are exempt from the consumption tax while medicines, medical equipment, medical- and nursing-care goods, and hospital meal materials are taxable.
Some call for medicines and medical materials to be zero-rated if purchased by medial institutions.
