Gcci wants Gst reduced in health insurance

Ahmedabad, February 1, 2022:  

Since the onset of Covid-19 disease, health insurance has become an important asset for businesses. While the industry is facing rising prices, the Gujarat Chamber of Commerce and Industry (GCC) on Monday issued a statement to the Union Finance Minister calling for a GST cut on health insurance. from 18% to 5%.

“Insurance coverage in India is low at 4.2% of gross domestic product (GDP), compared to the world average of 7%. It is expected that the government will take significant steps to support the economy. inclusion of high insurance in the Union Budget.A fixed -income organization leads with minimal support to the government budget, so it continues its unplanned spending and budgeting process More stable, “the report said.

According to business players, most medical, hospital, and counseling services are exempt from GST, while 18% GST applies to health insurance. The government has a strong reason to encourage the use of insurance to protect citizens and remove or lower the GST for say 5% on health insurance premiums.

“The government is working to improve health and well -being among the people, by taxing health insurance in the same way as non -essential assets. In addition, insurance has become obsolete. health as a necessity for the citizens in the management of disease and illnesses, ”said Pathik Patwari, general president, GCCI.

“At the same time, it reduces the financial burden on businesses and businesses while ensuring the well -being of employees and their families,” he added. ET HealthWorld