GST cut is welcome relief

TApart from building more hospitals and training more healthcare professionals, government should focus on preventative healthcare.

he GST Council’s decision to reduce tax on goods and services used for the treatment of Covid-19 disease brings a welcome relief to people fighting one of the most infectious diseases of recent times. The Council, which comprises state and Union finance ministers, has also decided to levy a five per cent tax on any drug that the health ministry recommends for the treatment of coronavirus infection. The reduction in the tax rate, however, would be applicable only till September. The tax on vaccines, however, would continue to be five per cent. Though several state governments had demanded exempting vaccines from GST, the Council went with the opinion of the central

government which opposed any such move. The state

governments, however, did not insist on its demand after the Centre agreed to buy 75 per cent of the vaccines for public immunisation. The focus on healthcare should continue even after the Covid pandemic. It is

high time that the Central and state governments take

lessons from the pandemic and take steps to improve the public health infrastructure which is woefully inadequate. Apart from building more hospitals and training more healthcare professionals, the government should

focus on preventative healthcare. It is believed that preventative healthcare could add billions of dollars to the economy by way of saving the cost of hospitalisation and by enhancing people’s productivity. Preventative healthcare could be promoted by reducing the cost of diagnosis by encouraging local manufacturing of medical equipment. Though the Narendra Modi government has already announced incentives for boosting the manufacturing of medical equipment, it should be pursued with renewed vigour.

Another step that would greatly help in the delivery of healthcare is the standardisation of medical records and the national storage of health records, which would allow people to avail medical care anywhere in India as records could be accessed by a click of the mouse, obviously after due authorisation of the patient.