The recent unveiling of the financial budget by the federal government has delivered quite a strong blow to the private hospitals operating in the country. A 5% tax on all private hospitals coupled with a 5% custom duty on imported medical devices is bound to have a noticeable impact on the cost of healthcare in the country. With the introduction of these new taxes, local health experts are of the strong opinion that medical treatment at private hospitals will undoubtedly become exceedingly out-of-reach for a large chunk of the population. In a country where reliable healthcare is a luxury that few can afford, these additional costs will only serve to aggravate the healthcare crisis. This is the first time in the history of Pakistan that the Federal Government has placed a tax on private healthcare institutes.