
(Image source from: malayalam.indiatoday.in)
Union Minister of Road Transport and Highways Nitin Gadkari's initiatives are being applauded by the country. His latest initiation towards the cashless treatment for road accident victims was a heart-touching move as many leave their lives only because of the financial crisis. Leaving this Nitin Gadkari has requested Finance Minister Nirmala Sitaraman to remove the goods and service tax (GST) of 18 percent on life and medical insurance premiums. Gadkari wrote this letter on 28th July forwarding a memorandum by the Nagpur Division Life Insurance Corporation. Union representatives meet Gadkari every weekend and in this meeting, they asked for the removal and Nitin has taken this forward.
In a letter, it is mentioned that “Given 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 the senior citizens as per rules with due verification along with other relevant points raised.” According to Indian Express, the letter goes like this, tax on the uncertainties of life, like insurance premium amounts should be removed. The premiums are a protection for the family and should be levied a tax on the premium to purchase cover against the risk. Similarly, they also talked about medical insurance, which is 18 percent. They urged the Minister to withdraw GST on such types.
Nitin Gadkari writes to FM on withdrawal of GST on Insurance premium@nitin_gadkari @nsitharaman @nsitharamanoffc #GST #nitingadkari #Read pic.twitter.com/2UnMnbz59a
— ET NOW (@ETNOWlive) July 31, 2024
Congress MP Karti Chidambaram has welcomed the letter of NDA minister Nitin Gadkari. He said that Indians are very underinsured and to encourage insurance, we need to stop making expensive premiums. If this GST has been removed, this will be a great move from the central government. This will make medical policies more affordable and will draw the attention of two-tier people as well. Medical insurance and life insurance policies are nothing but financial security for the people of India. As life is a fundamental right and sadly to ensure its safety we are paying GST.
Nitin Gadkari has requested Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to look into the issue on a priority basis. He compared this with SC and ST sub-classifications in the Supreme Court. He said that the removal of GST would win the hearts of the people. He also requested a tax exemption as the aging population is more in India. He mentioned that the tax should not be a luxury commodity and requested not to make the living difficult.