Should GST be removed from medical bills?

The GST is a very insensitive and blunt tool to collect taxes for the govt. But this does not necessarily mean that it has to be blunt and crude and all inclusive. The GST can be fine tuned in many ways to be more humane, compassionate and merciful in its application. Those who choose to support a one size fits all GST are just not willing to be flexible and can even be very mean or even wicked to take this kind of position.

One very glaring example of the inhumane application of GST is medical bills. The taxpayers are already sick, some very sick, some dying, and the Govt thinks it is alright to charge them GST. And the more serious is the illness, the more expensive is the medical bill, the greater will the sick have to pay for GST. A $1m medical bill will fetch a $70k GST or a half a million dollar bill will be $35k in GST. Is this the proper and morally right thing to do, to feast on the sick and the very sick?

Then the taxes on essential items like food and essential services. Maybe using more electricity or water would not make people squirm when they have to pay GST on them. What about food, like rice, sugar and salt? What about milk powder for the babies and baby food, when babies are so precious and so costly to bring up? Baby food is by no means cheap and the added GST is no small sum. The Govt’s explanation is that it could redistribute the GST collected to the needies. What a big bull. The amount collected could be the same tax the needies paid as GST. Or many could have fallen through the net and did not get any rebates from the Govt. Some would not qualify because of the stringent criteria when they really need it. The returning of GST to benefit the poor is a very grey area and the efficiency of seeing those who need the handouts is often found wanting.

There are many specific goods and services that GST could be refined and targeted. The rich that are willing to splurge on their elaborate funeral expenses needless to say would not mind paying GST for them. But why are the small people who just want to pay for the last rite with their little money or borrowed money made to pay GST? May be the service providers are GST exempt and we do not know.

There is no excuse to treat GST like a big wet blanket. It must be trimmed to fit some clear cut cases like medical and essential goods and services. Super talented millionaire ministers and civil servants would have no problems coming up with an acceptable and equitable and flexible GST policy on what need not be taxed.