Life and Medical Insurance: The government is constantly trying to promote life insurance and medical insurance. From time to time, the regulator of the insurance sector, IRDAI, keeps changing the guidelines according to the demand of the industry. However, the demand to reduce the GST on life and medical insurance keeps coming from time to time from different platforms. Currently, 18 percent GST is levied on these. Now Road Transport and Highways Minister Nitin Gadkari has also supported this demand. He has demanded the removal of GST on life and medical insurance.
Nitin Gadkari wrote a letter to Finance Minister Nirmala Sitharaman
Nitin Gadkari has demanded in a letter to Finance Minister Nirmala Sitharaman that GST be removed from life and medical insurance premium. He has said that the growth of the insurance sector is being affected due to GST. The burden of expensive treatment of diseases is increasing on senior citizens. We should take a decision on the GST imposed on this sector on priority. Due to high GST, people are not able to be comfortable with life and medical insurance. It is affecting the society.
Strengthen public and private sector insurance companies
Nitin Gadkari has appealed to the Finance Minister to take steps to strengthen the government and private sector insurance companies. Tax savings by taking insurance should also be encouraged so that people can feel relieved. For this, income tax deduction on premium should be re-started. He said that life and medical insurance are very important for the progress of society.
People’s inclination towards life and medical insurance will increase further
He has written that imposing GST on life insurance premium is like imposing tax on the uncertainties of life. If a person is taking steps to provide security to his family, then he should be given tax relief. We should not discourage them by imposing GST on them. Nitin Gadkari said that if the Finance Minister gives this relief to the people, then the inclination of the people towards life and medical insurance will increase further.
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