The Union Minister noted that individuals who cover the risk of life's uncertainties to protect their family shouldn't be paying GST (Image: X @Nitin Gadkari)
Since Nirmala Sitharaman received backlash from various sectors after the Budget announcement, Union Minister Nitin Gadkari sought her attention to withdraw GST on premiums for medical and life insurance plans.
Senior BJP leader and Road Transport and Highway Minister Nitin Gadkari has written a letter to Finance Minister Nirmala Sitharaman which is followed by a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union. The major issue was based on the GST amounts imposed on insurance premiums attracting an 18 per cent on both the medical and life insurance plans.
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
The Union Minister noted that individuals who cover the risk of life’s uncertainties to protect their family shouldn’t be paying GST and the 18 per cent on medical insurance premium would block the growth of this business. This is why they have urged the withdrawal of GST in both cases, the letter added.
The union that met Mr Gadkari also raised concerns about the consolidation of public and general insurance companies and the reintroduction of the IT deduction for health insurance premiums as each point was described in detail in the given memorandum.
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He sought the attention of the Finance Minister considering the suggestions of the Union members further withdrawing the GST on Life and Medical Insurance premiums. Nirmala Sitharaman is requested to take it as a priority as it becomes unmanageable for senior citizens on account of various rules, the letter concluded.
Earlier this week, Indian Union Muslim League (IUML) MP PV Abdul Wahab spoke about it in Rajya Sabha urging the elimination of GST on life and medical insurance premiums. The Indian insurance sector confronts significant challenges that require immediate attention and the current 18% GST on both is unreasonable and discourages individuals from securing essential financial protection, he added.
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