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PMA Demands Tax Freeze on Healthcare Sector, Opposes New FBR Measures in Federal Budget

KARACHI: The Pakistan Medical Association (PMA) has strongly opposed any new taxes on the healthcare sector in the upcoming Federal Budget 2026-27 and urged the government to freeze existing taxes, warning that additional financial burdens on doctors and healthcare facilities would ultimately affect patients.

In a pre-budget statement issued on Tuesday, PMA Secretary General Dr. Abdul Ghafoor Shoro criticized the Federal Board of Revenue (FBR) for what he termed persistent harassment of the medical community, saying healthcare should not be treated as a commercial commodity subject to excessive taxation.

The PMA stated that imposing further taxes on healthcare providers would increase the cost of medical services and make treatment less affordable for the public. It argued that doctors are service providers who perform a vital social responsibility by saving lives and that any additional financial pressure on them would be transferred directly to patients.

The association expressed concern over the country's economic situation, saying citizens are already burdened by rising inflation, high utility bills, increased fuel prices, and indirect taxes. It warned that higher taxation of private clinics and healthcare facilities could further restrict access to medical care, particularly for low-income families.

The PMA called on the government to reduce unnecessary public expenditures and take effective measures to curb corruption instead of imposing additional taxes on the healthcare sector. It also urged policymakers to increase investment in primary healthcare, disease prevention, clean drinking water, and sanitation, describing these measures as cost-effective strategies for improving public health and reducing long-term healthcare expenditures.

Rejecting the current health allocation of less than one percent of GDP, the PMA demanded that at least five percent of GDP be allocated to healthcare in line with international recommendations. The association also opposed the proposed implementation of retail-style Point of Sale (POS) systems and electronic invoicing requirements for small private clinics and diagnostic laboratories, arguing that such measures would create additional administrative burdens and increase treatment costs.

Highlighting public health challenges, the PMA noted that contaminated drinking water remains a major cause of disease in Pakistan and called for greater investment in safe water supply and preventive health measures to reduce the burden of illnesses such as hepatitis and drug-resistant typhoid.
The association warned that policies which increase the financial burden on healthcare providers could accelerate the migration of medical professionals abroad and further weaken the country's healthcare system. It urged the government to adopt a prevention-focused health strategy and reconsider any taxation measures that could adversely affect healthcare access for the public.

Dr. Abdul Ghafoor Shoro said the medical community would continue to advocate for policies that protect both healthcare providers and patients while promoting a stronger and more accessible healthcare system in Pakistan.

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