Defence – Rahul Gandhi Urges Rollback of Disability Pension Tax
Defence – Leader of the Opposition in the Lok Sabha, Rahul Gandhi, has called on Finance Minister Nirmala Sitharaman to address what he described as urgent concerns affecting India’s armed forces veterans. In a letter sent on Saturday, Gandhi sought immediate steps to strengthen the Ex-Servicemen Contributory Health Scheme and reconsider newly introduced income tax provisions on disability pensions.
Concerns Over Ex-Servicemen Health Scheme Funding
In his communication, Gandhi highlighted mounting financial stress within the Ex-Servicemen Contributory Health Scheme, commonly known as ECHS. The programme, created to ensure quality medical care for retired defence personnel and their families, is facing significant funding gaps, he wrote.
According to Gandhi, unpaid medical bills under the scheme have crossed ₹12,000 crore. He stated that the current budget allocation falls substantially short of actual requirements, estimating a shortfall of nearly 30 percent. As a result, several empanelled hospitals are reportedly withdrawing services due to delayed payments.
He warned that these financial bottlenecks are placing a direct burden on veterans. Many former servicemen, he said, are either paying for treatment from their own savings or postponing critical medical procedures. In serious cases, including life-threatening illnesses such as cancer, delays in care can have severe consequences.
Gandhi described the situation as distressing for individuals who had dedicated their careers to national service. He noted that former members of the armed forces should not face uncertainty when seeking healthcare benefits promised to them.
Disability Pension Tax Proposal Raises Objections
The letter also addressed provisions introduced in the Finance Bill 2026 that would bring certain disability pensions under the income tax net. Gandhi pointed out that this marks a significant policy shift, stating that disability pensions have traditionally remained exempt from taxation.
He argued that such pensions are not conventional income but compensation for injuries sustained during service. For personnel who continue in uniform despite disabilities, he said, the pension serves as support for physical sacrifices made in the line of duty.
Gandhi described the move as inappropriate, particularly for those who remain in active service after being injured. He said taxing these benefits sends the wrong message to soldiers who choose to continue serving the country despite personal hardship.
Veterans Share Grievances
The opposition leader said his intervention followed a recent meeting with a delegation of ex-servicemen who expressed deep dissatisfaction over both issues. According to him, the veterans conveyed a sense of disappointment and neglect, especially regarding healthcare access and financial security.
He wrote that it was troubling to hear such concerns from individuals who had represented the country in demanding circumstances. The delegation reportedly urged policymakers to reconsider the tax changes and to ensure timely settlement of ECHS dues.
Gandhi emphasised that the nation bears a responsibility toward those who have served in uniform. He called for immediate release of pending payments under the health scheme and a reassessment of the income tax proposal affecting disability pensions.
Call for Policy Review
In concluding his letter, Gandhi appealed for swift corrective action. He urged the Finance Minister to provide adequate budgetary support to stabilise the Ex-Servicemen Contributory Health Scheme and to restore full tax exemption on disability pensions.
The issues raised come at a time when discussions around defence welfare and veteran support continue to draw attention in policy circles. Any decision on the matter is expected to have significant implications for retired and serving defence personnel across the country.