India’s GST structure reveals a deeply flawed sense of priority when it comes to public welfare versus luxury consumption. Luxury goods like diamonds attract a mere 1.5% GST, while premium cars like bmw i-series are taxed at 5% under specific green vehicle incentives. On the other hand, essential items like medicines are taxed between 5% and 18%, and health insurance premiums are taxed at 18%—the same rate applied to sin goods and non-essentials. This skewed tax logic sends a dangerous message: that luxury is more accessible than life-saving services, and that wellness is a privilege, not a right.
At a time when public healthcare is inadequate and private hospitals are unaffordable for the average Indian, health insurance should be encouraged, not penalized. Making health insurance tax-free would not only offer financial relief to the middle class but also reduce the overall burden on the state’s healthcare infrastructure. It's unjust that people are taxed for protecting their families against medical emergencies while those who buy luxury goods enjoy subsidized indulgence. The current policy structure effectively punishes responsibility while rewarding extravagance. Healthcare is not a luxury—it's a necessity that should be protected, not taxed.
Furthermore, high taxation on life-saving goods and services highlights a deeper ethical crisis. As the quote rightly puts it, “No one would risk letting a mediocre person who scored 30% become a doctor”—because the stakes are life and death. Yet, we continue to treat healthcare as just another industry, rather than a fundamental right. Instead of taxing essential services to raise revenue for a bloated system that subsidizes luxury consumption, the government must reassess its priorities. The GST framework needs reform that reflects the values of a just society: prioritize wellness over wealth, and people over profit.
At a time when public healthcare is inadequate and private hospitals are unaffordable for the average Indian, health insurance should be encouraged, not penalized. Making health insurance tax-free would not only offer financial relief to the middle class but also reduce the overall burden on the state’s healthcare infrastructure. It's unjust that people are taxed for protecting their families against medical emergencies while those who buy luxury goods enjoy subsidized indulgence. The current policy structure effectively punishes responsibility while rewarding extravagance. Healthcare is not a luxury—it's a necessity that should be protected, not taxed.
Furthermore, high taxation on life-saving goods and services highlights a deeper ethical crisis. As the quote rightly puts it, “No one would risk letting a mediocre person who scored 30% become a doctor”—because the stakes are life and death. Yet, we continue to treat healthcare as just another industry, rather than a fundamental right. Instead of taxing essential services to raise revenue for a bloated system that subsidizes luxury consumption, the government must reassess its priorities. The GST framework needs reform that reflects the values of a just society: prioritize wellness over wealth, and people over profit.
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