Union Minister Nitin Gadkari Requests Finance Minister Nirmala Sitharaman to Remove GST on Life and Medical Insurance

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Dated 31st July 2024

By TDF News Desk

New Delhi : Union Minister for Road, Transport and Highways, Shri Nitin Gadkari, has written a letter to the Union Finance Minister, Smt Nirmala Sitharaman, seeking her cooperation on important issues related to the insurance industry.

In his letter, Shri Gadkari highlighted a memorandum received from the Nagpur Divisional Life Insurance Corporation Employees Union. The memorandum raises concerns about the high Goods and Services Tax (GST) rates on life and medical insurance premiums, which are currently at 18%.

Shri Gadkari emphasized that levying GST on life insurance premiums essentially means taxing the uncertainties of life. The union believes that individuals who purchase life insurance to protect their families should not be taxed for seeking this security. Similarly, the 18% GST on medical insurance premiums is discouraging people from opting for medical insurance, which is crucial for societal well-being.

The memorandum also discusses the need for differential treatment of savings through life insurance, re-introduction of income tax deductions for health insurance premiums and the consolidation of public and sector general insurance companies. Each of these points is detailed in the memorandum.

Shri Gadkari urged Smt Sitharaman to prioritize the withdrawal of GST on life and medical insurance premiums, especially considering the difficulties faced by senior citizens due to current rules and verification processes.

The letter concludes with a request for the Finance Minister to consider the suggestions made by the union to improve the insurance industry and provide relief to the citizens.