Tax on Health Services Sparks Concerns of Brain Drain

Healthcare Taxation and Its Impact on Patients and Professionals

The recent move to impose taxes on health services has stirred strong reactions across Pakistan’s medical community. The Pakistan Medical Association (PMA) has voiced serious concerns, warning that such measures could not only burden patients but also drive skilled doctors out of the country.

According to the PMA, extending point-of-sale (POS) and electronic invoicing integration to healthcare providers is legally questionable. Medical consultations, hospitalisation, and diagnostic services are not subject to sales tax under current laws. By treating healthcare like a retail transaction, the government risks undermining constitutional protections tied to the fundamental right to life.

Healthcare professionals argue that additional compliance costs will inevitably be passed on to patients. For those visiting small clinics where consultation fees range between Rs300 and Rs400, even minor tax burdens could make treatment unaffordable. This disproportionately affects low-income families, rural communities, and patients with chronic conditions who already struggle with healthcare expenses.

Another pressing issue is patient confidentiality. Mandatory electronic integration raises concerns about sensitive medical data being exposed. Medical records are protected by ethical codes and international standards, and any breach of privacy could erode trust between patients and healthcare providers.

The PMA also highlights the discriminatory nature of the regulation. While doctors, dentists, and hospitals are being targeted, other professional services such as lawyers remain exempt. This selective enforcement creates an uneven playing field and undermines fairness in policy-making.

Beyond financial and ethical concerns, the association warns of a looming brain drain. Many doctors who returned to Pakistan to serve the underprivileged are now reconsidering their decision. Rising costs and regulatory hurdles may push them to seek opportunities abroad, leaving the country with fewer skilled professionals at a time when healthcare demand is rising.

Healthcare leaders stress that meaningful consultation with stakeholders is essential before implementing such sweeping changes. Without dialogue, the risk of worsening patient access and accelerating the departure of medical talent becomes very real.

In essence, taxing health services is more than a fiscal issue—it is a matter of public welfare, constitutional rights, and the future of Pakistan’s healthcare system.