The Karnataka government has imposed a luxury tax of 8% on each bed in a hospital’s intensive care unit. Under the Karnataka Tax on Luxuries Act, 1979, ICUs that charge more than Rs 1,000 per day per bed can levy the luxury tax for accommodation, the state’s commercial taxes department said in a directive sent out to hospitals across Bangalore last week. The department cited Section 3E of the Act, which highlights amenities such as air conditioning, telephone, television sets, radio music, beds and extra beds provided in ICUs.

Private hospitals charge anywhere from Rs 2,500 to more than Rs 5,000 per day per room in ICUs. This means patients and their families will have to pay an additional Rs 200-400 daily. However, the commercial taxes department justified its decision, saying hospitals already charge luxury tax on deluxe and super deluxe rooms. “Hospitals collect more money from patients on the pretext of providing various facilities in these rooms, and it is natural that these have to be taxed," it said.

Last week, the Bihar government had included the samosa in a list of luxury items that will now attract a tax of 13.5% to fund development work. The kachori, salted snacks, sweets priced above Rs 500 a kilo and mosquito repellent were among other listed items.