BENGALURU, 6 SEPT

Health Minister Dinesh Gundu Rao has written to Prime Minister Narendra Modi, urging a review of the 18 per cent Goods and Services Tax (GST) imposed on health insurance premiums. In his letter, Rao highlighted the detrimental impact of high taxes on the affordability of health insurance, especially for middle- and lower-income families, who are increasingly staying away from purchasing policies due to the elevated costs.

The GST Council, which is set to meet on 9 September, has been asked to reconsider this tax rate as part of the efforts to ensure broader access to healthcare in India. Rao's appeal comes at a time when the government is pushing for universal health coverage by 2047, a target set under the Union government’s ambitious Ayushman Bharat Yojana. However, the 18 per cent tax is counterproductive to this mission, making premiums unaffordable for many, the health minister said.

Rao referenced the State’s Aarogya Karnataka Yojana, introduced in 2018, as an example of efforts to promote universal healthcare. However, he argued that high taxation undermines these initiatives, especially for those who are already struggling economically. The imposition of 18 per cent of GST on health insurance, in place since 2017, has made premiums more expensive. This has led to a significant drop in the number of people seeking insurance coverage, particularly among the economically weaker sections. –Salar News