In a letter to the Finance Minister, Nitin Gadkari requested the removal of the 18% GST. He wrote the withdrawal of GST on life and health insurance premiums. He stated that it takes life’s uncertainties and impedes the industry’s expansion. Here’s all you should know about the letter written to Nirmala Sitharaman.
Nitin Gadkari Writes To Nirmala Sitharaman
Nitin Gadkari appeals to Finance Minister Nirmala Sitharaman to remove GST on life and medical insurance premiums. ✅#sabarisec pic.twitter.com/HOrwHvJBbF
— SABARI SECURITIES (@sabarisec) July 31, 2024
Nitin Gadkari stated about the uneven handling of savings through life insurance and the reintroduction of the IT deduction for health insurance premiums. The amalgamation of public and sector general insurance businesses is another factor. The Minister of Road, Transport, and Highways highlighted how the heavy tax gets cumbersome for senior citizens. He additionally mentioned how it imposes barriers to the industry’s expansion.
The letter was in response to a memorandum. The minister received from the Nagpur Divisional Life Insurance Corporation Employees Union. The letter outlined the issues that the industry was facing.
Nitin Gadkari’s Statements
“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,” Nitin Gadkari mentioned.
“Similarly, the 18 percent GST on medical insurance premiums is proving to be a deterrent for the growth of this segment of business which is socially necessary,” he continued.
He additionaly wrote, “Levying GST on life insurance premium amounts to levying tax on the uncertainties of life. The Union feels that the person who covers the risk of life’s uncertainties to give some protection to the family should not be levied tax on the premium to purchase cover against this risk.” This also points to differential treatment of savings by way of life insurance, reintroduction of income tax deduction for health insurance premiums and consolidation of public sector general insurance companies.”
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