Nitin Gadkari urges for removal of GST on life and medical insurance plans

Nitin Gadkari has called for the removal of GST on life and medical insurance, stating that such taxes hinder the growth of these essential sectors

Team PGurus

July 31, 2024

Nitin Gadkari has called for the removal of GST on life and medical insurance, stating that such taxes hinder the growth of these essential sectors

Nitin Gadkari writes to Finance Minister to remove 18% GST on life and medical insurance

Amid widespread 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. 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.

“The main issue raised by the Union is related to the withdrawal of GST on Life and Medical Insurance Premium. Both life insurance and medical insurance premiums attract a GST rate of 18 percent. 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 premiums is proving to be a deterrent to the growth of this segment of business, which is socially necessary. Therefore, they have urged withdrawal of GST as mentioned above,” he added.

Gadkari said the union that met him also raised points related to differential treatment to savings by way of life insurance, re-introduction of the IT deduction for health insurance premiums, 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 Nirmala Sitharaman.

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