Amid criticism of Budget 2024 from several quarters, Union Minister and senior BJP leader Nitin Gadkari has written to Finance Minister Nirmala Sitharaman, requesting her to withdraw the GST imposed on premiums for life and medical insurance plans.
Mr Gadkari has said in his letter that he is writing to the Finance Minister following a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union.
“Main issue raised by the Union is related to withdrawal of GST on Life and Medical Insurance Premium. Both life insurance and medical insurance premiums attract a GST rate of 18 per cent. Levying GST on life insurance premium amounts to levying tax on the uncertainties of life,” the Road Transport and Highways Minister has written.
“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. 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 has added.
Mr Gadkari said the union that met him also raised points related to differential treatment to savings by way of life insurance, re-introduction of IT deduction for health insurance premium and consolidation of public and 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 Premium on priority as it becomes cumbersome for the senior citizens as per rules with due verification along with other relevant points raised,” the former BJP has said in his letter to Ms Sitharaman.
Mr Gadkari’s letter to the Finance Minister comes amid criticism from several quarters over the first Budget of the third Narendra Modi government, presented last week. While the Opposition has accused the Centre of being generous only to states ruled by its key allies TDP and JDU, a section of social media users have pointed to high tax rates for the salaried class.
The Finance Minister has trashed the Opposition’s charge, saying the Centre has provided funds to all states. She has said that if the name of a state is not mentioned in the Budget speech, it does not mean it is not covered. The BJP has said policy priorities of the Budget suggest that it has a long-term goal of ‘Viksit Bharat’ — making India a developed nation — by 2047.
