New Delhi: Road, transport and highways minister Nitin Gadkari has written to finance minister Nirmala Sitharaman, seeking withdrawal of the 18 percent Goods and Services Tax (GST) on life and medical insurance premiums, saying it amounts to taxing the uncertainties of life and restricts the sector’s growth.
While writing to Finance Minister Nirmala Sitharaman on behalf of Nagpur LIC union, Gadkari said the indirect tax levied on life insurance premium amounts to levying tax on the uncertainties of life, reported ETNow.
“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.
