Nitin Gadkari Requests Finance Minister Nirmala Sitharaman To Cut Down GST On Life, Medical Insurance

Union Minister Nitin Gadkari has urged Finance Minister Nirmala Sitharaman to remove the GST on life and medical insurance premiums. This request follows a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union. The union argues that the 18% GST on these premiums is unfair and burdensome, especially for those seeking protection against life's uncertainties.

"The 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," Gadkari wrote in his letter.

Concerns Over High Tax Rates

The union also highlighted other concerns, such as differential treatment of savings through life insurance, reintroducing IT deductions for health insurance premiums, and consolidating public sector general insurance companies. These points were included in Gadkari's letter to Sitharaman.

Gadkari emphasized that taxing life insurance premiums essentially taxes individuals for protecting their families against life's risks. He noted that the 18% GST on medical insurance premiums hinders the growth of this essential sector.

Opposition Criticism and Government Response

This appeal comes amid criticism of Budget 2024 from various quarters. The Opposition has accused the government of favouring states ruled by its allies, TDP and JDU. Social media users have also pointed out high tax rates for salaried individuals.

The Finance Minister has dismissed these accusations, stating that funds have been allocated to all states. She clarified that not mentioning a state in the Budget speech does not mean it is excluded from funding.

Long-Term Goals Highlighted

The BJP has defended the Budget, saying it aims for a 'Viksit Bharat' or developed India by 2047. They argue that policy priorities reflect long-term goals rather than immediate gains.

Gadkari's letter underscores the need to reconsider GST on insurance premiums, especially for senior citizens who find it cumbersome under current rules. He requested Sitharaman to prioritize this issue along with other relevant points raised by the union.

The union believes that removing GST on these premiums would support social welfare and encourage more people to opt for life and medical insurance coverage.

As debates around Budget 2024 continue, Gadkari's intervention highlights significant concerns about tax policies affecting everyday citizens. His call for action reflects broader issues within India's financial landscape that require attention.