TIOL-DDT 1161 · Friday, 24 July 2009 · story 3 of 3

Karaunanidhi wants waiver of Service Tax on Health Insurance

Under the ‘ Kalaignar Insurance Scheme for Life Saving Treatments for One Crore Poor Families' launched by the Tamil Nadu Government yesterday, the State government had committed itself to pay the premiums on behalf of the poor to enable them to access private health institutions for life-saving treatments. The Rs. 517 Crores project of the State Government may have a Service Tax component of Rs. 48 Crores. And it is this 48 Crores that Karunanidhi wants to be waived. Seems to be fair – at least the welfare schemes of the State meant for the poor should be exempted from Service Tax.