Union Budget 2024: Experts call for removal of 18% GST on mental health services

With the Union Budget 2024 all set to be presented, experts are pitching for scrapping or slashing the existing 18 per cent Goods and Services Tax on mental health services. They opined that strategic spending is a must for creating a society resilient in its psyche as part of India's framework.

"Mental health issues are highly prevalent, yet are poorly managed and are affecting a significant number of our population. In the upcoming Budget, we urge the government to remove or reduce the 18 per cent GST on mental health services," Jyoti Kapoor, Founder & Director of Manasthali Wellness, told IANS.

The biggest concern is that mental health has become such an issue it has huge implications for national productivity and economic stability. There is a growing demand for health insurance policies that would cover physical and mental health.

The prohibitive costs of medications and therapies keep many from wanting to report mental health conditions.

Divya Mohindroo, a counselling psychologist, said there is an imminent need for comprehensive policies regarding mental health in India. She further added that the country also needs to increase its workforce in this sector to match the rising demand for services.

"Out of an estimated 150 million people needing mental health services, only fewer than 30 million seek help," Mohindroo told IANS.

"Lack of mental health professionals is crippling in India, with merely 0.3 psychiatrists, 0.07 psychologists, and 0.07 social workers available per 100,000 people," she added.

"There should be specific measures for mental health, and we are hopeful the Budget will prioritise this urgent issue. There is an immediate need to strengthen India's mental health workforce, with just one psychiatrist per two lakh people," Mohindroo said.

She also suggested "scholarships to train professionals to help reduce this gap".

A related key recommendation by experts is that mental health services be brought within the ambit of health insurance coverage. According to experts, this would make care more accessible and affordable for people.

"While government centres receive some relief, private practitioners are left burdened. Extending tax benefits to private practitioners is crucial, given the high operational costs for the average therapist. In addition to acknowledging the financial difficulties experienced by private practitioners, this change would help lower the cost and increase public accessibility to mental health care," Kapoor said.

"This will help our citizens access mental healthcare without burdening them financially," added Mohindroo.