Amid widespread criticism of Budget 2024, Union Minister and senior BJP leader Nitin Gadkari has written to Finance Minister Nirmala Sitharaman, urging her to withdraw the GST imposed on premiums for life and medical insurance.
In his letter, Gadkari explains that he is responding to a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union. The union’s primary concern is the 18% GST on life and medical insurance premiums. Gadkari argues that taxing life insurance premiums equates to taxing the uncertainties of life.
“The union believes that individuals who invest in life insurance to protect their families should not be taxed on these premiums. Similarly, the 18% GST on medical insurance premiums is hindering the growth of this essential sector. Therefore, they have requested the removal of this GST,” Gadkari stated.
He also mentioned that the union raised additional issues, including the differential treatment of savings through life insurance, the re-introduction of income tax deductions for health insurance premiums, and the consolidation of public and private general insurance companies.
“In light of these concerns, I urge you to consider the removal of GST on life and medical insurance premiums as a priority, especially since it imposes a burden on senior citizens and requires extensive verification,” Gadkari wrote to Sitharaman.
Gadkari’s letter comes amidst criticism of the first Budget of the third Narendra Modi government, presented last week. The Opposition has accused the Centre of favoring states governed by its allies, TDP and JD(U), while some social media users have criticized high tax rates on the salaried class.
Finance Minister Sitharaman has dismissed the Opposition’s claims, asserting that the Centre has allocated funds to all states. She clarified that the omission of a state’s name from the Budget speech does not mean it is excluded. The BJP has defended the Budget, stating that its policy priorities aim to achieve ‘Viksit Bharat’—a developed India—by 2047.
