Nitin Gadkari appeals to Nirmala Sitharaman to remove 18% GST on life insurance
PTC News Desk: Union Minister and prominent BJP politician Nitin Gadkari has written to Finance Minister Nirmala Sitharaman, pleading with her to remove the GST levied on life and health insurance plan premiums, in response to criticism of Budget 2024 from various sources.
In his letter, Mr. Gadkari stated that he was inspired to write to the Finance Minister by a memo that the Nagpur Divisional Life Insurance Corporation Employees Union had sent.
The Union's primary concern is the removal of the GST from life and health insurance premiums. The GST rate is 18 per cent for both life insurance and health insurance premiums. The Road Transport and Highways Minister has written that "levying GST on life insurance premium amounts to levying tax on the uncertainties of life."
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"The Union believes that there should be no tax applied to the premium paid by the individual who insures the family against life's uncertainties in order to provide some level of protection." Similar to this, the 18% GST on medical insurance premiums is proving to be a barrier to the expansion of this industry, despite the fact that it is socially required. As a result, they have urged the above-mentioned GST removal," he continued.
According to Mr. Gadkari, the union that he met with also brought up issues about the union's preference for savings through life insurance, the reinstatement of the IT deduction for health insurance premiums, and the combination of public and private general insurance firms.
"In view of the above, you are requested to consider the suggestion of Withdrawal of GST on Life and Medical Insurance Premium on priority as it becomes cumbersome for the senior citizens as per rules with due verification along with other relevant points raised," the former BJP leader wrote in a letter to Ms. Sitharaman.
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- With inputs from agencies
