Unfair tax on healthcare

The general public has already raised criticism against the provision of imposing 18% GST on health insurance premiums. The issue is now being discussed in Parliament. The opposition MPs had strongly protested in the Lok Sabha the other day against this tax collection which can be described as complete injustice. The MPs termed it tax terrorism. Over the last three years, the Centre has squeezed Rs 21,255 crore from the people as tax on health insurance policies. Rs 8262 crore reached the exchequer as the tax on health insurance policies last year alone. Members of the India Bloc staged a walkout from the Lok Sabha on Tuesday to protest against Finance Minister Nirmala Sitharaman's action of rejecting the opposition's demand not to impose tax on health insurance policies. The matter was also discussed in the Rajya Sabha.

The Finance Department is of the stand that since the matter falls under the purview of the GST Council, a decision should be taken there. The GST Council consists of the Center and the States. Although there is logic in the Finance Ministry's position that it is preferable to raise the problem and seek a solution in the GST Council, since health care is an important issue, it has to be said that there is no inappropriateness in the Centre intervening in the matter. Even those in the ruling front are against imposing huge taxes on health insurance policies. Union Minister Nitin Gadkari and others had sent a letter to the Union Finance Minister raising this demand. Bengal Chief Minister Mamata Banerjee also wrote to the Finance Minister raising the same demand.

The main objective of insurance plans is to ensure health security. In today's times, most of the people are unable to afford hospitalization and medical expenses. This is the main reason why people are increasingly turning towards health insurance policies. Insurance companies are also frequently increasing the insurance amount as they are unable to bear the expenses. The common man's burden has been further exacerbated by the implementation of the 18% tax. If it cannot be avoided completely, then at least an attempt should be made to reduce the rate significantly. With the Union Finance Ministry refusing to intervene in the matter, the GST Council should consider it seriously. The states occupy a significant role within the council. The GST on health insurance premiums will undoubtedly be eliminated or lowered if the states stand together and jointly make a demand.

Senior citizens make up 20 per cent of the country's population. However, those above 60 or 65 cannot join the health insurance plans. That is the law of insurance companies. Although this condition is said to have changed in recent times, many companies are yet to offer health insurance policies to senior citizens. People living with serious diseases are in dire straits as they cannot afford the ever-increasing cost of treatment. Many people are living longer just because of the benefits of the government's health and safety schemes.