Luxury Tax on Life!

Excuse me for writing again on ‘Luxury Tax’ matters.  

We, the people of this state are not sure whether we will come back, healthy and alive if we get treated at Government Hospitals. Those who feel that my statement is unreasonable, may visit government hospital and see by themselves the plight of the facilities there. 

This is the very reason we all end up taking treatment at private nursing homes or corporate hospitals. The private hospitals rarely have General wards and they consist mostly of Semi-Private, Private and Private Deluxe rooms.  

The Government of Karnataka is of the opinion that the hospitals rooms charging over Rs.1000/- per day have to pay ‘Luxury Tax’. When I read the Act, I couldn’t find the meaning of ‘Luxury’ and by common sense, I don’t find any luxury in hospital rooms when we are ill. The dictionary meaning of Luxury is “A state of great comfort or elegance, especially when involving great expense.  

I understand that the word Luxury is applicable to Star Category Hotel Rooms, Elite Club facilities, etc. What I am unable to digest is the fact that hospital rooms are ‘Luxury’. Today, it is not just cancer but even a fever that can be deadly! New variations of fever are killing thousands of people every day. So, when people are unwell and get admitted in a hospital, they are tensed and want to recover soon. Do you find a similarity of Luxury in hotels and in hospitals? How can someone even think that hospital rooms are ‘luxury’ in nature?  

I am not blaming the present government for this tax. It was enacted in 2004. For argument’s sake, let’s agree with the government that hospital rooms charging over Rs.1000/- per day are ‘Luxury’ in nature.  

If the Government wants to tax its subjects in every possible way; I can show you another way, where they can garner thousands of crores as taxes! ‘Luxury Tax on Life  

The way people have to renew their medical Insurance policy or the way people have to pay annual property taxes to the Corporation, you can ask to pay ‘Luxury tax on Life’ for all the citizens living in this state.

  • Every year people have to renew their license to live by paying Luxury tax on life
  • You can charge premium rates for those living in owned houses; charge less for those living in rented houses.
  • You can charge subsidized rates for those living in slums and huts; but charge, don’t spare them.

Thought for the day

The greatest wealth is health; so we can say that health is luxury (and not the hospital bed, as the government thinks!) 

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About B E Kumar Prasad

He is a Practicing Chartered Accountant in Bengaluru, India. He has 28+ years of experience in income tax, business setup, and NRI matters. He is also an Insolvency Professional, Registered Valuer (F&SA) and Social Auditor.Prasad welcomes your comments and questions. Please email him at simplifiedlaws20@gmail.com

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