Union Minister of Road Transport and Highways Nitin Gadkari has urged Finance Minister Nirmala Sitharaman to eliminate the 18 percent Goods and Services Tax (GST) on life and medical insurance premiums.
In his letter to the Finance Minister, Gadkari highlighted the concerns raised by the Nagpur Division Life Insurance Corporation Employees Union, which had submitted a memorandum outlining various issues affecting the insurance industry.
Referring to the memo, the minister said, "Levying GST on life insurance premiums 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 protection to the family should not be levied tax on the premiums to purchase cover against this risk."
Gadkari further noted that the primary concern raised by the Union is the request to withdraw the 18 percent GST on life and medical insurance premiums. Additionally, he highlighted other issues brought up by the Union, including the need for equitable treatment of savings through life insurance, the re-introduction of income tax deductions for health insurance premiums, and the consolidation of public sector general insurance companies.
He further said, "Similarly, the 18 per cent GST on medical insurance premiums is proving to be a deterrent for the growth of this segment of business which is socially necessary."