Karnataka government exempts beds in ICUs from luxury tax after outcry

Bengalauru: After public outcry, Karnataka Government on Wednesday exempted eight per cent luxury tax imposed on each bed in an Intensive Care Unit (ICU) in hospitals.

"We have exempted beds in hospital ICUs from the eight per cent luxury tax. The government had issued a directive in this regard to all hospitals in the city. This directive stands cancelled," Chief Minister Siddaramaiah told reporters.

The decision comes after the medical fraternity raised a hue and cry arguing that the tax will add burden on the patients, who get admitted in the ICUs of private hospitals for critical care services and not on account of luxuries.

The Commercial Tax Commissioner had six months ago issued the order bringing ICU beds under the luxury tax net, but it was put into effect a few days ago, triggering protests.