Health Minister Dinesh Gundu Rao asks state govts to support lower GST rate on health insurance
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Bengaluru: Karnataka Minister of Health Dinesh Gundu Rao has requested the chief ministers, finance ministers and health ministers of seven states ruled by governments of non-BJP parties to urge the GST Council, during its meeting in New Delhi on Monday, to reduce the tax burden in health insurance for the people.
The Health Minister added that he has written to the West Bengal, Andhra Pradesh, Telangana, Kerala, Punjab, Jharkhand, and Himachal Pradesh state governments, amid a widespread demand to reduce the GST being levied on the premiums of health and insurance from 18 per cent to 5 per cent.
Minister Dinesh Gundu Rao has said that an 18 pc GST creates an unnecessary burden on the lower and middle income families and also dissuades them from taking health insurance. He had brought this point to the notice of Prime Minister Narendra Modi, asking him to direct the GST Council to reduce the burden on at least the lower and middle income groups. He opined that a collective effort at communicating the matter would give the states a greater chance of gaining the required result.
Earlier too, many asked for a scrapping of GST on health insurance. The Opposition parties had raised the issue in Parliament, during the monsoon season last month, and also staged a protest outside the House demanding for a reduction.
Union Finance Minister Nirmala Sitharaman, who heads the GST Council, the apex body on taxation policies and rates, has said that 54th meeting of the Council is scheduled for Monday, when the matter will be discussed.
The finance ministers of states are members of the GST Council and, as state governments are wary of possible shortfalls in revenue if a reduction in tax is implemented, arriving at a consensus during the Council meetings remains a challenge. A group of ministers headed by Bihar Deputy Chief Minister Samrat Choudhary is looking rate rationalization, and the Council has asked for the appointment of a fitment committee, comprising the commercial tax officers of states, in order to analyse the implication of the proposed health insurance tax cut on the state revenue. The fitment committee report is expected on Monday.
C Shika, commercial tax commissioner and fitment committee member refused to divulge the details in the report as it was related to a government policy. The officer added that the document will be studied but the final decision on tax rate would be taken by the GST Council.
A majority of the Council members are reportedly in favour of a reduction in tax on health and life insurance policies with annual premiums up to Rs 50,000 and the Council may even consider capping the sum assured for a lower GST levy.
Trade representatives from the insurance sector have concurred on the need to lower the tax burden given the rising cost of healthcare. They said that the policy should aim at making healthcare affordable especially for the middle-class citizens.
Dr. KT Venkatesh, Deputy Vice-president of HDFC Ergo, has said that the GST should be exempted for health insurance policies up to Rs 5 lakh, as this what the bulk of the middle-class opts for. The measure would be in line with the Union government’s ‘health for all’ policy too, he opined.
The GST Council is also expected to discuss the rate rationalization of all other commodities and services, as several states, including Karnataka, have asked for compensation for a shortfall in revenue if rates are rationalized.
Basavaraj Rayareddi, economic advisor to Karnataka Chief Minister Siddaramaiah, said that the government has been firm in its demand that the Centre should adequately compensate states as a slash in rates would cause revenue implications.
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Heavy rain, hailstorms likely to lash Uttarakhand on Tuesday; IMD issues warning
Dehradun/Pithoragarh (PTI): The India Meteorological Department (IMD) has issued a warning for heavy rain and hailstorms across several districts of Uttarakhand on Tuesday, as temperatures remained markedly below normal in the region.
Heavy rainfall is likely at isolated places in Dehradun, Haridwar, Tehri, Pauri, Nainital, Champawat, and Udham Singh Nagar districts. Most places across all districts are expected to receive light to moderate rain or thunderstorms, while higher reaches are likely to witness snowfall, officials said on Monday.
The weather department warned of thunderstorms accompanied by lightning, hail and intense spells of rain in six districts, including Dehradun and Nainital. Gusty winds with speeds reaching 40-50 kmph are also expected at isolated locations in these areas and other hilly districts.
In the state capital, Dehradun, the sky is forecast to remain partly cloudy with light rain and thunderstorms accompanied by gusty winds of 30-40 kmph.
The maximum and minimum temperatures in the city are expected to hover around 31 degrees Celsius and 19 degrees Celsius, respectively.
Maximum temperatures during the past 24 hours remained markedly below normal in the hills and appreciably below normal in the plains. While no significant change in temperature is expected over the next 2-3 days, the IMD predicts a rise of 3-5 degrees Celsius during the subsequent 3-4 days.
Rainfall was recorded in several areas after 8.30 am today, with Ramnagar receiving 31.5 mm and Nainital recording 26.5 mm. Other areas, including Pithoragarh, Khatima and Champawat, also reported moderate precipitation.
Authorities have stopped a batch of 36 Adi Kailash pilgrims at the Dharchula base camp and placed the high-altitude yatra route on high alert following heavy rains and hailstorms in the district on Monday.
Dharchula SDM Ashish Joshi said the pilgrimage was halted due to adverse weather conditions. The issuance of new inner-line passes has been suspended until the weather normalises.
With 1,700 passes issued so far, pilgrims already at higher camps are being monitored for safety, the official added.
