Lagatar24 Desk
New Delhi: Union Minister and senior BJP leader Nitin Gadkari has appealed to Finance Minister Nirmala Sitharaman to withdraw the Goods and Services Tax (GST) on premiums for life and medical insurance plans. This request follows widespread criticism of the Budget 2024 from various sectors.
In his letter, Gadkari referenced a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union, highlighting their concerns about the 18% GST imposed on life and medical insurance premiums. He argued that taxing life insurance premiums is akin to taxing 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,” Gadkari wrote. “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.”
Gadkari also addressed other points raised by the union, including differential treatment of savings through life insurance, re-introduction of IT deductions for health insurance premiums, and the consolidation of public and private sector general insurance companies.
“In view of the above, you are requested to consider the suggestion of withdrawal of GST on life and medical insurance premiums on priority as it becomes cumbersome for the senior citizens as per rules with due verification along with other relevant points raised,” he stated.
This letter comes amidst critiques from various quarters regarding the first budget of the third Narendra Modi government. The Opposition has accused the Centre of favoring states governed by its allies, while some social media users have pointed out the high tax rates for the salaried class.
Finance Minister Sitharaman has refuted these allegations, asserting that the Centre has allocated funds to all states and that the omission of a state’s name in the budget speech does not imply exclusion. The BJP maintains that the budget’s policy priorities are geared towards achieving ‘Viksit Bharat’ — a developed India — by 2047.
