Union Minister of Road Transport and Highways, Nitin Gadkari, has appealed to Finance Minister Nirmala Sitharaman to revoke the 18 percent Goods and Services Tax (GST) levied on life and medical insurance premiums.
In his letter to the Finance Minister, Gadkari expressed the concerns of the Nagpur Division Life Insurance Corporation Employees Union. The union had submitted a memorandum highlighting the issues faced by the insurance industry.
Gadkari emphasized, "Levying GST on life insurance premiums amounts to taxing the uncertainties of life. The Union believes that individuals covering life's risks to protect their families should not be taxed on the premiums they pay for such coverage."
He further elaborated that the primary concern raised by the union pertains to the withdrawal of GST on both life and medical insurance premiums, currently taxed at 18 percent.
"Similarly, the 18 percent GST on medical insurance premiums is hindering the growth of this essential segment," Gadkari added.
He pointed out that the high tax rate on medical insurance is particularly burdensome for senior citizens, who often face extensive verification processes to claim benefits.
Gadkari concluded, "In view of these issues, I urge you to prioritize the withdrawal of GST on life and medical insurance premiums. This move will not only support the insurance industry but also provide relief to policyholders, especially senior citizens."
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