Japan Press Weekly

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2012 June 13 - 19 [FINANCE]

Hospitals annually pay \ 120 million in consumption tax

Municipality-owned hospitals in Japan paid an average of 121.4 million yen per hospital in consumption tax in the FY 2010, reveals a survey conducted by the Japan Municipal Hospital Association comprising 926 hospitals.

The survey also shows that the amount paid for the consumption tax at municipal hospitals with a capacity of more than 500 beds exceeded 300 million yen a year.

The survey results show that even the present 5% rate in the consumption tax is pressing hospital management. An increase in the tax to 10% will definitely throw hospital operators into more difficulties.

Currently, medical services are exempt from the consumption tax while medicines, medical equipment, medical- and nursing-care goods, and hospital meal materials are taxable.

Some call for medicines and medical materials to be zero-rated if purchased by medial institutions.