Union Minister Nitin Gadkari has urged Finance Minister Nirmala Sitharaman to withdraw the GST imposed on premiums for life and medical insurance plans.
In the letter, he pointed out that both life and medical insurance premiums attract a GST rate of 18 per cent, adding that this is like levying tax on the uncertainties of life.
He said the letter was written after he received a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union.
Citing the Union's memorandum, he said 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. He added the GST on the medical insurance premium is a deterrant for the growth of the insurance sector.
He also raised issues like reintroducing IT deduction for health insurance premiums.
"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 senior citizens as per rules with due verification," the minister said in the letter to Sitharaman
