Leader of the Opposition in Lok Sabha, Rahul Gandhi, has written to FM Nirmala Sitharaman urging the government to withdraw the newly proposed income tax on disability pensions and provide adequate funds to the Ex-Servicemen Contributory Health Scheme (ECHS).
In his letter, Gandhi raised two key concerns affecting armed forces personnel - pending medical reimbursements under ECHS and the taxation of disability pensions proposed in the Finance Bill 2026.
Rs 12,000 Crore Pending Under ECHS
Rahul Gandhi stated that the ECHS, which provides healthcare services to ex-servicemen and their families, is facing severe financial stress. According to him, over Rs 12,000 crore in medical bills remain unpaid and the current budget allocation is nearly 30% below the required level.
Due to delayed payments, several empanelled hospitals are reportedly opting out of the scheme. As a result, many veterans are being forced to pay for treatment from their own pockets or delay critical medical care, including treatment for serious diseases such as cancer.
Objection to Tax on Disability Pensions
Referring to the Finance Bill 2026, Rahul Gandhi expressed concern over the proposal to tax disability pensions of armed forces personnel who continue in service despite injuries. He pointed out that disability pensions have been tax-exempt since 1922 and are meant to compensate servicemen for injuries sustained in the line of duty.
He termed the move a "historic shift" and said such pensions should not be treated as regular income. Gandhi added that taxing disability pensions sends a negative message to those who continue to serve the nation despite physical challenges.
Call for Immediate Government Action
Gandhi said a delegation of ex-servicemen recently met him and expressed disappointment over the current situation. He urged the Finance Minister to immediately clear pending ECHS dues through enhanced budgetary allocation and restore full income tax exemption on disability pensions.
The issue is likely to gain attention during discussions on the Finance Bill 2026, as concerns grow over welfare measures for armed forces veterans and serving personnel.
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