Rate Cuts Complement Ayushman Bharat, PMJAY, Says Health Minister
The Prime Minister’s comments came a day after the GST Council approved a complete overhaul of the tangled Goods and Services Tax (GST) regime.
In an interaction with National Teacher awardees, Modi noted that five new “gems” (panch ratna) have been added to India’s vibrant economy through the GST reforms. He said GST has become even simpler, and the new rates of five percent and eighteen percent will come into effect from the first day of Navratri.
“GST 2.0 is a double dose of support and growth for the nation. Next-generation reforms in GST have been done to support India’s progress in the 21st century. Five new gems (panch ratna) have been added to India’s vibrant economy through GST reforms,” he said.
“Without timely changes, we cannot give our country its rightful place in today’s global situation. I had said from the Red Fort on 15 August this time that it is crucial to undertake next-generation reforms to make India self-reliant. I had also promised the countrymen that there would be a double blast of happiness before this Diwali and Chhath Puja,” he added.
The Prime Minister mentioned that during the Congress regime, basic household items used to be “heavily taxed,” and the BJP government has tried to address those issues for the ease of the common man.
Meanwhile, the Health Minister said on Thursday that the Union government’s decision to exempt individual health and life insurance premiums from Goods and Services Tax (GST) complements Ayushman Bharat and PMJAY by expanding private coverage, reducing out-of-pocket expenditure, and driving the mission of Health for All. This will also make premiums more affordable for middle-class households and encourage wider insurance adoption.
The GST rationalization package reflects a balanced, citizen-centric approach to taxation, the ministry stated.
“By lowering the burden on medicines, medical devices, nutrition, and insurance, while discouraging harmful consumption, the Government has taken a major step towards making healthcare more accessible, affordable, and preventive in nature,” the ministry said. Healthcare services provided by doctors, hospitals, and diagnostic centres are already exempt under the current GST regime. Building upon this, several key reforms were approved on Wednesday.
“Under the visionary leadership of PM @narendramodi ji, the Union Government has announced the Next-Gen GST reforms to support ongoing growth and development. Reduced tax rates on several essential products will enhance ease of living, help families manage costs, and bring relief to different sectors. At the same time, this reform will strengthen the ease of doing business and empower small businesses across the country. My heartfelt gratitude to Narendra Modi ji and Finance Minister @nsitharaman ji for this forward-looking decision that will benefit our citizens, especially middle-class families,” Union Health Minister J P Nadda tweeted.
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