Nitin Gadkari urges Nirmala Sitharaman to eliminate 18% GST on life and medical insurance, citing burden on citizens.
New Delhi: In a bid to make medical and life insurance more affordable, Union Minister Nitin Gadkari has sought advice from Finance Minister Nirmala Sitharaman for removing the 18% Goods and Services Tax (GST) on these premiums stating that it brings within its net premium cost tax which is detrimental for those insuring against health as well as their lives. He stressed that especially pensioned senior citizens execute it difficult to pay this GST & mentioned with such tax, people get disincentive for buying insurance coverage. It may be noted that this was not the first such appeal as it comes months after a similar demand in June by the Confederation of General Insurance Agents' Associations which had argued that lowering GST on health policies will lead to enhancement in social security measures and reduce skyrocketing premiums including medical costs.
