New Delhi: At a time when the Union Budget 2024 is drawing criticism from various quarters, Union Minister and senior BJP leader Nitin Gadkari has written to Finance Minister Nirmala Sitharaman, urging her to withdraw the GST imposed on premiums for life and medical insurance plans.
The Road Transport and Highways Minister, in his letter, stated that he was writing following a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union.
“Both life insurance and medical insurance premiums attract a GST rate of 18 per cent. Levying GST on life insurance premium amounts to levying tax on the uncertainties of life,” the minister wrote.
“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. Similarly, the 18% GST on medical insurance premium is proving to be a deterrent for the growth of this segment of business, which is socially necessary. Therefore, they have urged withdrawal of GST as mentioned above,” he added.
The minister claimed that the union members met him and also raised points related to differential treatment to savings by way of life insurance, re-introduction of IT deduction for health insurance premium and consolidation of public and sector general insurance companies.
