FM Nirmala Sitharaman Rejects Calls to Reduce GST on Health Insurance Premiums

Finance Minister Nirmala Sitharaman has dismissed requests to reduce the GST rate on health insurance premiums, stating that the current 18% rate is appropriate. The minister emphasized that lowering the GST rate would lead to revenue loss and could potentially impact the government's fiscal position. Despite concerns raised by industry stakeholders about the affordability of health insurance, the government has decided to maintain the existing tax rate. The decision underscores the government's balancing act between revenue generation and providing tax relief, especially in critical sectors like healthcare.