Mamata Pushes Affordable Healthcare With GST Waiver
GST waiver on health insurance to cost Bengal Rs 900 crore.
West Bengal Chief Minister Mamata Banerjee announced on Tuesday that waiving the Goods and Services Tax (GST) on health insurance premiums, a reform her government championed, will cost the state’s exchequer a staggering Rs 900 crore annually. Speaking at a public welfare program in Bardhaman, Banerjee emphasized that the move prioritizes affordable healthcare for citizens despite the financial hit. “We pushed for this GST exemption to make health insurance accessible to the common people,” she said, underscoring West Bengal’s role in advocating for the policy.
The proposed GST waiver, expected to be discussed at the GST Council’s meeting next month, aims to eliminate the current 18% tax on health insurance, of which states receive 9%. Banerjee cautioned that insurance companies must not exploit the relief by hiking premiums. “The goal is to ease the burden on families, and we’ll ensure insurers don’t undermine this,” she asserted.
The reform is poised to increase health insurance uptake in India, where less than one-fifth of the population has private coverage. While welcomed by policyholders and industry leaders, the waiver has raised concerns among states about revenue losses, as GST collections are a key part of their tax revenue. Banerjee, however, remains steadfast, linking the initiative to her government’s Swasthya Sathi scheme, which offers free health coverage of up to Rs 5 lakh for West Bengal residents.
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By expanding Swasthya Sathi alongside the GST waiver, Banerjee aims to bolster healthcare access across the state. “This is about people’s well-being,” she said, highlighting how the combined efforts will encourage more citizens to secure health insurance, reducing financial strain during medical emergencies. As the GST Council prepares to finalize the proposal, Banerjee’s push for affordability signals a transformative step for healthcare in West Bengal, even at a significant cost to the state’s finances.
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