GST on Health Insurance Premiums Sparks Political Row
Finance Minister Nirmala Sitharaman has firmly rebuffed accusations that the central government is profiting from the goods and services tax (GST) on health insurance premiums. During a debate on the Finance Bill in the Rajya Sabha, she asserted that the matter falls squarely within the purview of the GST Council, a body comprising representatives from both the central and state governments.
Opposition’s Accusations
Opposition members have been vocal in their criticism of the GST on health insurance premiums, labeling it as “daylight robbery.” They argue that the tax unfairly burdens individuals seeking healthcare coverage and contradicts the government’s stated commitment to affordable healthcare.
Sitharaman’s Rebuttal
Ms. Sitharaman countered these accusations by highlighting that states receive 50% of the GST collected, and an additional 41% of the Centre’s share is also devolved to the states. She also pointed out that health insurance premiums were taxed even before the introduction of GST. The Finance Minister urged the protesting MPs to address their concerns to their respective state Finance Ministers who are members of the GST Council.
GST Council’s Role
The Finance Minister emphasized that the GST Council has deliberated on the issue of GST on health insurance premiums on multiple occasions in the past. She reiterated that decisions in the Council are made through consensus, with the participation of Finance Ministers from all states.
Gadkari’s Letter
Opposition members also raised the issue of Union Minister Nitin Gadkari’s letter to Ms. Sitharaman on the matter. Without mentioning Mr. Gadkari by name, the Finance Minister expressed her displeasure that the Opposition had capitalized on the letter, claiming that it was leaked to the public without the Minister’s consent.
Budget’s Balancing Act
Ms. Sitharaman reiterated that the Union Budget strikes a balance between various critical imperatives, including growth, employment generation, capital investment, and fiscal consolidation. She stressed that the government has successfully achieved this balance without compromising any specific sector.
Increased Allocation for Agriculture
The Finance Minister highlighted the increased allocation for agriculture and allied sectors in the current budget. She noted that the allocation has risen from ₹1.44 lakh crore last year to ₹1.52 lakh crore this year, representing an increase of ₹8,000 crore. Additionally, Ms. Sitharaman questioned the methodology and conclusions of the Global Hunger Index, asserting that the report was compiled without adequate data from India.
Conclusion
The debate over GST on health insurance premiums continues to simmer, with the Opposition and the government holding divergent views. While the Opposition contends that the tax is unjust and burdens the common man, the Finance Minister maintains that it is a matter for the GST Council to decide. The increased allocation for agriculture and the government’s defense of its budgetary priorities further highlight the complexities of balancing competing demands in a vast and diverse country like India.
Summary
Finance Minister Nirmala Sitharaman has deflected criticism regarding the GST on health insurance premiums, stating that it falls under the jurisdiction of the GST Council. She urged Opposition MPs to address their concerns to their respective state Finance Ministers. The Minister also highlighted the increased allocation for agriculture and defended the government’s budgetary priorities.
Key Learning Points
| Point | Description |
|---|---|
| GST on Health Insurance Premiums | The Opposition criticizes the GST on health insurance premiums as burdensome, while the Finance Minister maintains that it is a matter for the GST Council to decide. |
| GST Council’s Role | The GST Council, comprising representatives from both the central and state governments, makes decisions on GST rates and related matters through consensus. |
| Increased Allocation for Agriculture | The Union Budget has increased the allocation for agriculture and allied sectors. |
| Balancing Priorities | The government aims to balance various imperatives, including growth, employment generation, capital investment, and fiscal consolidation. |
| Global Hunger Index | The Finance Minister questioned the methodology and conclusions of the Global Hunger Index. |
Soumya Smruti Sahoo is a seasoned journalist with extensive experience in both international and Indian news writing. With a sharp analytical mind and a dedication to uncovering the truth, Soumya has built a reputation for delivering in-depth, well-researched articles that provide readers with a clear understanding of complex global and domestic issues. Her work reflects a deep commitment to journalistic integrity, making her a trusted source for accurate and insightful news coverage.
