Lady Reading Hospital refuses to pay bills, wants adjustment of sales tax paid since 1990: report

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PESHAWAR: Lady Reading Hospital (LRH), a public sector medical teaching institution has refused to pay the sales tax after ‘learning’ about exemption on levies on electricity, and gas charges as well as revenue generated by the Sehat Sahulat programme, reported a private media outlet.

The LRH administration has also planned to ask the Federal Board of Revenue (FBR) to adjust the sales tax (amounting to Rs 5 million every month since 1990) it has paid in the period of 1990 to November 2017 in its next utility bill. The hospital would, however, continue to pay taxes on salaries and services to the FBR.

Clause 52-A of the Schedule 6 of the Sales Tax Act 1990 exempts hospitals operated by federal or provincial governments or a charity of 50 beds or more or the teaching hospitals of statutory universities of 200 or more beds.