Nitin Gadkari Urges FM to Withdraw GST on Life and Medical Insurance Premiums
Nitin Gadkari Urges FM to Withdraw GST on Life and Medical Insurance Premiums
Gadkari’s appeal highlights the impact of GST on insurance growth and life’s uncertainties.
Nitin Gadkari, the Minister for Road Transport and Highways, has appealed to Finance Minister Nirmala Sitharaman to remove the GST on life and medical insurance premiums.
This request follows a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union, which describes the GST as a tax on life’s uncertainties and a barrier to the growth of medical insurance.
In his letter to the Finance Minister, Gadkari notes that the Union has raised concerns about the 18% GST applied to both life and medical insurance premiums. They argue that taxing premiums is akin to taxing the protection against life’s uncertainties and the GST on medical insurance is hindering the expansion of a socially vital sector.
The Union has also requested reconsideration of tax policies related to life insurance savings, the reintroduction of income tax deductions for health insurance premiums, and the consolidation of public and sector general insurance companies.
Gadkari’s letter emphasizes the need for urgent action, particularly to alleviate the burden on senior citizens and address other related issues.
The GST Council, which takes a call on the tax, will meet in August. The last meeting was on June 22.
