New Delhi, The world has not yet emerged from the crisis of the global pandemic Corona. It has affected people all over the world in unprecedented ways. During this time the importance of health insurance has increased among the people. People have started seeing it as a necessary investment. However, tax deduction is achieved due to payment of tax insurance premium paid by taxpayers. But if the deduction achieved due to the payment of insurance premium is increased by at least another 50 percent, then the reach of health insurance in the country will increase.
Kovid-19 has created the need to make health insurance compulsory for all employees. Health insurance is necessary for the protection of their health and life.
So we believe that from here we can get a strong foundation to increase the reach of health insurance. In our view, the GST charge on health insurance premium paid by corporate companies should be input tax credit. Input tax credit should be given on GST charge on purchase of group health insurance cover. However it is not provided in the current GST law.
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It would prove to be a major step if the government included the cost of vaccination provided by the people under the tax deduction on health check-up.
This will not only save the health insurance from the problems of citizens and taxpayers but also reduce their tax burden. India is a country with young population, where people need health insurance. If the government encourages buying an insurance policy, then people will have more money left in their hands, which they will be able to spend. Those who work or do business will save their income because the expenses on diseases, hospitalization and health related problems will be saved due to health insurance. Health insurance covers medical expenses.
When people have more money to spend, it will also go to the treasury of the government. The government will be able to raise more revenue through indirect taxes on these expenses.
We sincerely hope that in the coming budget, the government will take appropriate steps to give a boost to the non-life insurance sector. We believe that if the government takes such a step, it will definitely increase the scope of insurance in the country.
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