Last Updated on 31/07/2024 by wccexam Desk
BJP leader and Union Road Transport and Highways Minister Nitin Gadkari has written a letter and appealed to Union Finance Minister Nirmala Sitharaman. He has asked the Finance Minister to remove the 18 percent GST on life and medical insurance premium. In a letter to Sitharaman, Gadkari said that the Nagpur Division Life Insurance Corporation Employees Union has submitted a memorandum to him on these issues. He also said that imposing 18 percent GST on life and medical insurance premium is ‘like imposing tax on the uncertainties of life.’
‘18% GST is an obstacle to development’
Gadkari said in his letter that the association believes that insurance premiums should not be taxed to enable people to buy cover against this risk. He said that similarly, 18 per cent GST on medical insurance premiums is proving to be a hindrance to the growth of this business sector, which is socially important.
Related news
- Taapsee Pannu spoke on playing different roles…
- Lovlina has a chance for a gold medal in the Olympics
- Monsoon rains wreak havoc; see the condition of UP, Himachal and MP
- Monsoon rains wreak havoc; see the condition of UP, Himachal and MP
- How was India’s 5th day at Paris Olympics 2024?
Nitin Gadkari further said that the association also raised the issue of treatment for savings through life insurance, re-introduction of IT deduction for medical insurance premium as well as integration of public sector general insurance companies.
He also said that paying GST on life and medical insurance premium is a challenge for senior citizens. Gadkari said in his letter, “You are requested to consider the suggestion of withdrawing GST on life and medical insurance premium on priority basis as it becomes cumbersome for senior citizens as per the rules, along with proper verification on other relevant points should also be done.”
There has already been a demand to reconsider GST
This is not the first time Nirmala Sitharaman has been requested to reconsider the GST levied on health insurance premiums. In June this year, the Confederation of General Insurance Agents Association of India had urged the government to reduce the GST on individual medical policies from 18 per cent to 5 per cent. The body of non-life insurance agents said that this would help encourage people to buy these policies as a measure of social security. The body also pointed out that the health insurance premium has almost doubled in the last 5 years.
The association had said in its letter to Sitharaman that the policy renewal rates are declining due to the continuous increase in premium rates and rising medical inflation. The association said in its letter to Sitharaman, “The average percentage of renewal of retail health insurance policies is 65 to 75 percent. This clearly shows that most policyholders are not able to pay the premium due to the continuous increase in insurance premium and the very high rate of GST.”