Karnataka Government Urges PM to Abolish 18% GST on Health Insurance Premiums

📅 By Admin | September 07, 2024
📂 Categories: #GST #RecentNews
⏳ 4 Min Read

On *Friday, September 6, the *Karnataka government made a formal appeal to *Prime Minister Narendra Modi, urging him to advise the *GST Council to abolish the 18% GST on health insurance premiums. The appeal was made ahead of the GST Council meeting scheduled for September 9, 2024.

Karnataka’s *Health Minister, Dinesh Gundu Rao, expressed concerns over the high taxation on health insurance premiums, labeling it a *regressive move that makes healthcare less accessible for the common citizen. In his message on ‘X’ (formerly Twitter), Rao stated:

“Ensuring a healthy India is a duty of every elected representative, beyond party lines. Imposing 18% GST on health insurance is a regressive move, making healthcare less accessible to the common man.”

He added that he has appealed to the Prime Minister to prioritize the well-being of citizens by exempting health insurance premiums from GST.

Impact of High GST on Health Insurance

Rao emphasized that the 18% GST on health insurance has been in place since 2017, despite repeated protests from politicians, policymakers, and stakeholders across the board. He described this tax as draconian, especially in a post-pandemic world where access to healthcare is crucial.

In his letter to the Prime Minister, the Health Minister argued that the high tax rate makes health insurance premiums more expensive, disproportionately affecting economically weaker sections. Rao noted that even a slight increase in premium costs could force people to forgo other necessities or avoid purchasing health insurance altogether. This leaves them financially vulnerable in the event of medical emergencies.

Appeal for GST Exemption

Rao also highlighted the positive impact of Karnataka’s cashless state health insurance scheme, noting that it provides essential protection to citizens. He argued that exempting health insurance premiums from GST would act as a crucial buffer, allowing more people to access affordable healthcare coverage.

“The two-step coverage system of government health schemes and purchased health insurance is essential to the well-being of our citizenry,” Rao wrote, urging the central government to take immediate action.

Conclusion

As the GST Council prepares to meet, the Karnataka government’s appeal has placed a spotlight on the growing debate over healthcare affordability in India. The removal of the 18% GST on health insurance premiums could significantly lower costs, making healthcare more accessible to millions across the country.