Congress Targets PM Modi Over Nitin Gadkari’s Letter On GST

The Congress party has launched an attack on the Bharatiya Janata Party (BJP) following union minister Nitin Gadkari’s letter to finance minister Nirmala Sitharaman, which they claim signals internal dissent and rumblings against Prime Minister Narendra Modi.

Gadkari’s Concerns on GST

In his letter, Gadkari urged Sitharaman to withdraw the 18 per cent Goods and Services Tax (GST) on life and medical insurance premiums. He expressed concerns on behalf of the Nagpur Division Life Insurance Corporation Employees Union, which had submitted a memorandum regarding issues in the insurance industry. Gadkari argued that taxing life insurance premiums equates to taxing the uncertainties of life.

“The Union feels that the person who covers the risk of life’s uncertainties to give protection to the family should not be levied tax on the premiums to purchase cover against this risk,” Gadkari wrote.

Congress’ Reaction

Congress general secretary Jairam Ramesh took a swipe at the BJP over the letter, stating, “Nitin Jairam Gadkari’s letter to the FM on the Budget is a sure sign of internal dissent and rumblings against the non-biological PM,” in a post on X.

Gadkari’s Request to the Finance Minister

In his letter, Gadkari asked Sitharaman to roll back the tax as it becomes burdensome for senior citizens. “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,” he wrote. He also mentioned that the 18 per cent GST on medical insurance premiums is hindering the growth of this socially necessary business segment.

Additionally, Gadkari highlighted other issues raised by the union, including differential treatment of savings through life insurance, the reintroduction of income tax deductions for health insurance premiums, and the consolidation of public sector general insurance companies.

This development has fueled speculation about internal disagreements within the BJP and has provided the Congress with an opportunity to critique the Modi administration.