Nitin Gadkari has formally requested Finance Minister Nirmala Sitharaman to consider withdrawing the 18% GST imposed on life and medical insurance premiums. In his letter, Gadkari emphasized that the high tax rate on these essential insurance products places an undue financial burden on individuals, particularly those from lower and middle-income groups.
Gadkari highlighted that the removal of the 18% GST would not only make insurance more affordable but also encourage a higher uptake of life and medical insurance policies. By reducing the cost of premiums, more people would be able to secure comprehensive coverage, thereby improving their financial protection and overall well-being.
The request aligns with broader discussions on making essential services and financial products more accessible and affordable. Gadkari's appeal reflects a growing concern over the impact of GST on insurance costs and aims to prompt a review of current tax policies to better support consumers.
The outcome of this request could significantly influence the insurance sector and taxpayer sentiment, potentially leading to policy changes that benefit a wider segment of the population.
