Karnataka Govt Urges PM Modi to Push for Abolition of 18% GST on Health Insurance Premiums at Upcoming Council Meeting

The Karnataka government on Friday urged Prime Minister Narendra Modi to advise the GST Council, which is scheduled to meet on September 9, to eliminate the 18 percent tax on health insurance premiums. 

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. I have appealed to Prime Minister Narendra Modi avaru to take immediate action, advising the GST council to exempt health insurance premiums from GST. It’s high time we prioritize the well-being of our citizens, said Health Minister Dinesh Gundu Rao in a post on 'X'.

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.

I have appealed to Prime Minister @narendramodi avaru to take immediate… pic.twitter.com/XT6Q9sv9cJ

— Dinesh Gundu Rao/ದಿನೇಶ್ ಗುಂಡೂರಾವ್ (@dineshgrao) September 6, 2024

Rao pointed out that the GST on health insurance, set at 18 percent, remains in one of the highest tax brackets since 2017, despite numerous protests from various stakeholders, including politicians and policymakers. In his letter to the Prime Minister, he stated, "Such a high GST on an essential service, particularly in a post-pandemic world, is draconian and not in line with the actions of a welfare state."

A high rate of GST has a direct impact on the cost of premiums which means that health insurance is now more expensive, he said. The rising cost, while not discernible to the upper economic crisis, has a cataclysmic effect on economic weaker sections to whom even a marginal increase in the premium makes it inaccessible to purchase.