Union Minister of Road Transport and Highways, Nitin Gadkari, has formally petitioned Finance Minister Nirmala Sitharaman to consider the withdrawal of the 18% goods and services tax (GST) currently levied on life and medical insurance premiums.


In an official correspondence dated July 28, Minister Gadkari conveyed concerns raised by the Nagpur Division Life Insurance Corporation Employees Union regarding various issues affecting the insurance industry. Gadkari, who represents the Nagpur constituency in the Lok Sabha, highlighted the union's contention that imposing GST on life insurance premiums is tantamount to taxing life's uncertainties.


The letter states, "The Union maintains that individuals seeking to mitigate risks and provide family protection should not be subject to taxation on premiums for such coverage."


Minister Gadkari further emphasized that the 18% GST on medical insurance premiums is impeding the growth of this socially vital business segment. He urged the Finance Minister to prioritize the consideration of withdrawing GST on both life and medical insurance premiums, noting the particular burden this tax places on senior citizens.


Additionally, the correspondence addressed other pertinent issues raised by the union, including:


1. The differential treatment of savings through life insurance

2. The potential reintroduction of income tax deductions for health insurance premiums

3. The ongoing consolidation of public sector general insurance companies