Withdraw 18% GST on Premiums for Life, Medical Insurance, Nitin Gadkari Urges FM Sitharaman
Moneylife Digital Team 02 August 2024
Nitin Gadkari, Union minister of road transport and highways has requested finance minister (FM) Nirmala Sitharaman to withdraw the 18% goods and services tax (GST) on premiums for life and medical insurance.
 
In his letter to the FM, Mr Gadkari says he received a memorandum from the Nagpur Division Life Insurance Corporation Employees Union on issues faced by the insurance industry. One of the main issues was GST levied on premiums for life and medical insurance, he says.
 
Referring to the memorandum, 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 premium to purchase cover against this risk."
 
"Similarly, the 18% GST on medical insurance premiums 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," Mr Gadkari says.
 
Further, the minister says 18% GST on premiums for life and medical insurance also becomes cumbersome for senior citizens.
 
Comments
ksukumaran_72
1 month ago
The minister has done a very good thing by requesting the FM to withdraw the very high
GST on life and health insurance policies.One fails to understand why this thug tax is
imposed on the poor middle class who have very few avenues provided by the government
to meet the astronomical cost of healthcare.Those who are neither immensely rich nor
visible poor have to depend on health insurance policies to get some cover for their
hospital treatment.The cost of treatment has gone up by leaps and bounds during the
last decade and so have the premia for health policies.By imposing an 18% GST on these
policies the government has made it beyond the reach of an average citizen.It seems
that the government is only bothered about the long term progress of the nation and
is totally oblivious to the acute problems faced by the middle class in the present.In
the long term we are all dead.By discouraging savings and contributing to cost of living
the ruling dispensation believes that there is nothing can stop it from its march to
enhance inequality. .On the other hand the benefits meted out to the rich and ultra rich
never stops.
suketu
1 month ago
Nitin Gadkari as road minister has done a disastrous job.I donot understand why and how Modi is impressed with him.Gadkari shd focus on his own work given his track records as roads minister and performance/durability of the roads in India.
r_ashok41
1 month ago
On one hand govt wants health for the citizens but when it comes to insurance they tax the common people like anything .I would have expected the present govt who wants to make the common man suffer like anything and die would have imposed 28% so that they should choke to death.For life and medical insurance it should be made affordable and not eat into the savings of people .Very bad govt and worst govt which only talks and does not do anything for the common man
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