‘Tax on uncertainties of life’: Gadkari asks FM Sitharaman to withdraw 18% GST on life, medical insurance premiums – Times of India

NEW DELHI: Union minister Nitin Gadkari wrote a letter to finance minister Nirmala Sitharaman urging the removal of the current 18 per cent Goods and Services Tax (GST) that is levied on life and medical insurance premiums.
In the letter addressed to the FM he said: “Main issue raised by the Union is related to withdrawal of GST on Life and Medical Insurance Premium.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 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 Union road transport and highways minister noted that the Union has put forth several suggestions, including the provision of Differential Treatment to Savings through Life Insurance policies. Additionally, they have advocated for the reinstatement of Income Tax deductions for health insurance premiums paid by individuals.
Furthermore, the Union has proposed the consolidation of public and sector general insurance companies, with the aim of streamlining operations and improving efficiency in the insurance industry.
Each point is explained in details in the memorandum, read the letter.
The former President of the BJP has penned the letter following the Nagpur Divisional Life Insurance Corporation Employees Union’s submission of a memorandum to the Union minister. The memorandum seeks action on issues affecting the insurance industry.