It is common for all of us to stay glued during union budget bulletin, mostly to find out how an individual is getting benefitted or affected by tax regulations being spelt out. It is not unusual for someone to look only at the income tax, however, service tax and other taxes have started affecting day to day life of middle class of present society. The upcoming budget is not going to be any different. However, changing times calls for disruptive changes in the system so as to provide indirect benefit to each individual rather than giving them disposable cash to indulge in activity which will only provide temporary benefit.
Giving relief to middle class tax payers and promoting health insurance is one aspect which has become a permanent feature in almost all budgets. With medical inflation growing at a healthy +10% year on year the amount offered looks too little for anyone to look at a higher insurance value to get the protection. It is time that Finance minister makes it attractive by giving a higher exemption limit so that a higher sum insured can be availed for the entire family. A healthy family who can afford good treatment by best of doctors are only going to add to the national income. In fact, there should be service tax exemption on health insurance so that each individual can afford a higher sum insured. Further service tax limit has really gone up and going to keep on increasing in every budget. Imagine one can buy another health policy by just paying the service tax amount payable on the present exemption limit! With increase in life style diseases everyone is looking at buying critical illness cover, the minimum the government can do is to increase the limit to allow more citizens to avail a basic health policy with critical illness cover thus creating a healthy population ahead thereby increasing productivity.
