The higher GST of 18% is proving quite burdensome for insurance buyers as it previously stood at 15%. The industry expects its rationalistation.
Earlier, service tax was payable only on the risk component of the premium while the investment portion did not levied any tax. Now, it is to be seen to what extent the Budget 2018 augurs well for the insurance industry and insurance buyers.
There are also expectations that the limit for tax exemption under Section 80C could be raised which would encourage savings and hence purchase of insurance policies.
There is a lot of buzz surrounding the budget and voters are expecting various largesses and reliefs from the kitty of the finance minister.
Will the last full budget of the Modi government be an exercise in politics to woo voters ahead of the 2019 Lok Sabha polls, or a smart economic outlay for the country for 2018-2019?
Jaitley will present one more budget in 2019, but it will be only a vote-on-account. Thus the FM has to present a budget that will give a major push to the current sluggish economy of the country.