Nitin Gadkari
Nitin Gadkari writes to Finance Minister, seeks withdrawal of 18% GST on life, medical insurance premiums: Report
New Delhi/IBNS: Nitin Gadkari, the Union road, transport and highways minister, has written to finance minister Nirmala Sitharaman, seeking withdrawal of the 18 percent Goods and Services Tax (GST) on life and medical insurance premiums, reports MoneyControl.
According to reports, Gadkari mentioned in the letter that the 18 percent GST on life and medical insurance premiums amounts to taxing the uncertainties of life and restricts the sector’s growth.
“You are requested to consider the suggestion of withdrawal of GST on life and medical insurance premium on priority as it becomes cumbersome for the senior citizens,” Gadkari wrote in his letter dated July 28 as reviewed by Moneycontrol.
“Similarly, the 18 percent GST on medical insurance premium is proving to be a deterrent for the growth of this segment of business which is socially necessary,” Gadkari added.
The letter was in response to the Nagpur Divisional Life Insurance Corporation Employees Union, which submitted a memorandum to the minister, highlighting the problems faced by the industry, reports MoneyControl.
“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,” the minister wrote in the letter referring to the memo.
According to MoneyControl, Nitin Gadkari said the union also pointed to the "differential treatment of savings by way of life insurance, reintroduction of income tax deduction for health insurance premiums and consolidation of public sector general insurance companies."
The GST Council — the constitutional body for making recommendations to the Union and State Government on issues related to GST — will meet in August.
Its last meeting was held on June 22, according to reports.
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