MADURAI: The Tamil Nadu Chamber of Commerce and Industry has made an appeal to the GST Council to reduce the GST rate imposed on individual health insurance policies as a social security measure and help more people get covered under medical insurance at an affordable cost.
In a press statement issued from Madurai on 30th November 2021, TN Chamber president Mr.N.Jegatheesan has urged the GST Council to rationalise the 18 per cent GST rate imposed on individual health insurance policies. “There must be a distinction between commercial and individual policies because the insurance premium paid for policies for commercial organisations receives input tax credit whereas the premium paid to individuals taking health, personal accident, home security policies etc at GST rate of 18 per cent is high. Health insurance is a social security measure especially during the current pandemic time,” he added.
MAKE IT FOUR SLABS:
The TN Chamber president Mr.Jegatheesan had pointed out that Government should encourage citizens to take medical and accident insurance policies by keeping low GST rate. Appealing to the GST Council to further rationalize GST slab and tax rates in the forthcoming meeting to be held in December, he observed that the current GST slabs and rates do not commensurate with economic demand and employment opportunities. “We request the GST Council to rationalize rates into four slabs of 0 per cent, five percent, 10 per cent and 15 per cent. The items in 0 per cent and 5 per cent should be kept as it is while there can be reduction in the other two slabs,” Mr.Jegatheesan had suggested and added that lowering tax rates will greatly help in increasing the tax revenue and increase of GDP growth rate of our country.
