SBI Urges Higher Healthcare Spending, Uniform GST on Medical Devices

As the Union Government gears up for Budget 2025, a report by State Bank of India stated that the government should give significant focus to revitalizing the insurance and healthcare sectors in the country.

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The report also noted that the government should consider exempting GST and taxes on term and health insurance premiums, increase the healthcare budget to 5 per cent of GDP, and rationalize GST rates on medical devices to a uniform 5 per cent to 12 per cent.

It said, "No GST/Tax on Term/Pure Life Insurance and health insurance premiums. In line with NPS, a separate deduction for life/health insurance in the new/old tax regime, say Rs 25,000/50,000. All the government-sponsored pension schemes, APY, PM-SYM, PM-KMY, and NPS-Traders may be brought under one umbrella."