Will hospital tax be rolled back?

New Delhi: Renowned cardiologist Devi Shetty met Finance Minister Pranab Mukherjee on Wednesday to seek withdrawal of 5 percent tax on health care services provided by centrally air-conditioned hospitals, according to sources.

Shetty, who is the Chairman of Bangalore-based heart hospital Narayana Hrudayalaya, has been spearheading the campaign for withdrawal of service tax on health care industry.

The renowned doctor had earlier described the proposal to impose service tax on health care as a "misery tax".

"This is not 'Service Tax', it is a 'Misery Tax' since the government wants to make money out of your misery", he had said in an open letter posted on the website of the Narayana Hrudayalaya.

Mukherjee, in the Union Budget for 2011-12, had proposed to impose an effective service tax of five percent on all services, including diagnostic services, provided by centrally air-conditioned clinical establishments having more than 25 beds for in-patient treatment.

Besides, the service tax would also be levied on services provided by consultant doctors operating from premises of such hospitals.