Karnataka Government Pushes for GST Exemption on Health Insurance

The Karnataka government has requested Prime Minister Narendra Modi to advise the GST Council to eliminate the 18% tax on health insurance premiums. State Health Minister Dinesh Gundu Rao emphasised that high GST rates are making healthcare inaccessible, particularly affecting economically weaker sections.

The Karnataka government has called on Prime Minister Narendra Modi to intervene and advise the GST Council to scrap the 18% GST on health insurance premiums. The council is set to meet on September 9.

State Health Minister Dinesh Gundu Rao argued that the high tax rate is regressive and makes healthcare less accessible for the common man. Rao's appeal was shared in a post on 'X', stressing the need to prioritize citizens' well-being.

The minister pointed out that the 18% GST rate on health insurance has been unchanged since 2017, despite numerous protests. He highlighted that the high tax impacts premium costs, making health insurance unaffordable for economically weaker sections. This can leave families vulnerable to medical emergencies and severe financial distress.

(With inputs from agencies.)