'Remove GST on life insurance...': Nitin Gadkari's appeal to Sitharaman
What's the story
Union Minister and senior Bharatiya Janata Party leader Nitin Gadkari has sent a letter to Finance Minister Nirmala Sitharaman urging the withdrawal of the Goods and Services Tax applied to premiums for life and medical insurance plans.
Gadkari mentioned that his request follows a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union.
Tax consequences
'Life insurance, medical insure attracts 18% rate...': Gadkari
"Main issue raised by the Union is related to withdrawal of GST on Life and Medical Insurance Premium," the Road Transport and Highways Minister wrote in his letter.
"Both life insurance and medical insurance premiums attract a GST rate of 18%. Levying GST on life insurance premium amounts to levying tax on the uncertainties of life," he added.
Priority request
'Urged withdrawal of GST...'
"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," he said.
"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," he added.
Highlights issues
'Cumbersome for senior citizens'
Gadkari also said that the union which met with him also highlighted issues such as unequal treatment of savings through life insurance, the need to reintroduce tax deductions for health insurance premiums, and the consolidation of public and private sector insurance companies.
"You are requested to consider the suggestion...priority as it becomes cumbersome for the senior citizens as per rules with due verification along with other relevant points raised," he added.