New Delhi, July 31 (UNI) Union minister for Road Transport and Highways Nitin Gadkari has asked Finance Minister Ms Nirmala Sitharaman to consider withdrawing levying of GST on Life and Medical Insurance premium as this effectively means imposition of tax on the “uncertainties of life”.
Gadkari’s letter comes after Nagpur Divisional Life Insurance Corporation (LIC) employees Union submitted a memorandum to him seeking his intervention to do away with the imposition of GST on the premium for life and medical insurance.
Gadkari is Member of Parliament from Nagpur constituency.
“Main issue raised by the Union is related to withdrawal of GST on Life and Medical Insurance premium. Both Life and Medical insurance premium attract 18 percent GST. Levying GST on such premiums amounts to levying tax on the uncertainties of life,” he said in the letter quoting Union’s appeal.
The Union feels, Gadkari said, 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 the risk.
Similarly, the 18 percent GST on medical insurance premium is proving to be a “deterrent” for the growth of this segment of business which socially necessary. Therefore, the Union has urged for doing away GST on such premiums, the Minister said.
The Union has also raised points related to “Differential Treatment” to savings by way of Life Insurance, re-introduction of IT deduction for health insurance premium and consolidation of public and sector general insurance companies.
“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,” Gadkari said in the letter.
