The Jan Shakti Seva Samiti (JSSS), a local residents’ body in Noida has written to Union finance minister Nirmala Sitharaman demanding removal of 18 per cent service tax levied on mediclaim policies in the country. The residents’ body urged that apart from job loss and economic repercussions due to Covid-19 lockdown, residents are also burdened with additional health expenditure due to Covid-19 pandemic. Given the situation, the 18 per cent service tax on health policies should be done away with.
The Jan Shakti Seva Samiti has written a letter to Union finance minister Nirmala Sitharaman. Through the letter, the committee has demanded the removal of 18 per cent service tax levied on mediclaim policy in the country.
“At present, health related expenditure in the country has also come under the service tax. This puts an additional burden on ordinary citizens. While it’s the basic duty of any government to provide food, clothes and shelter, it should also look into providing good health facilities. A lot still remains to be done in the field of health and doing away with the service tax on medical policies is one such move,” said Narendra Chopra chairman JSSS.
Chopra adds that presently 18% service tax is levied on mediclaim policy. The common citizen pays this service tax out of his own pocket. This puts additional burden on people. “The higher the value of the policy, the higher this tax amount goes up based on the calculations of the value of the policy. Because of this additional expenditure, many people withdraw from taking medical policy. At a time when the hospital expenditure for basic ailments goes up in lakhs, if the citizen is left paying such taxes, then where will he find the money to pay for his hospital bills? Hence, we have requested the doing away of the said tax in our letter to the finance minister,’ said Chopra.