Union Budget 2024: Insurers seek enhanced tax benefits for health insurance
Insurers are calling for increased tax benefits for health insurance, relaxed payment norms for MSMEs, and incentives for the agri-tech sector in the upcoming Union Budget 2024-25. FM Nirmala Sitharaman is set to present the budget on July 23, which will outline the new government's economic agenda.
Insurance sector stakeholders are urging for more tax benefits under the new tax regime. Anup Rau, MD and CEO of Future Generali India Insurance Company, highlighted that the deduction limit on health insurance premiums under Section 80D has not changed in nine years, despite rising healthcare costs. Rau suggested linking the limit to inflation for automatic adjustments.
Affordable health insurance
Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance, proposed reforms such as offering health insurance to employees at negotiated rates, reducing GST on premiums, and increasing Section 80D exemption limits. He also emphasised removing the deduction limit for senior citizens to ease their financial burden.
Focus on cancer care
D S Negi, CEO of Rajiv Gandhi Cancer Institute & Research Centre, stressed the importance of funding for advanced cancer treatments. He recommended extending Ayushman Bharat to citizens above 70 and increasing the coverage limit for critical illnesses like cancer.
Medical devices and MSMEs
Pavan Choudary, Chairman of the Medical Technology Association of India (MTaI), called for reduced customs duties on medical devices to improve patient affordability and prevent illegal imports. Vivek Jalan from Tax Connect Advisory Services LLP suggested relaxing payment norms for MSMEs to align with the CGST Act, extending the credit period to 180 days.
Sustainability and technology investments
Saurabh Rai, CEO of Arahas, anticipates significant investments in renewable energy and green technologies. Sanjay Kumar, Founder and CEO of Geospatial World, advocated for dedicated funds for digital twin technology to enhance infrastructure management and resilience.
Finance Minister's role
This budget will be Finance Minister Nirmala Sitharaman's first major policy document since being appointed in the Modi government's second term. It is expected to outline steps towards making India a USD 5-trillion economy and achieving the 'Viksit Bharat' vision by 2047.
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