Central government should remove GST on life insurance and mediclaim policies: Gadkari
#News Bureau July31,2024
Union Minister and senior BJP leader Nitin Gadkari has written a letter to Finance Minister Nirmala Sitharaman requesting to withdraw the GST imposed on the premium of life and medical insurance schemes. BJP is surprised by this statement of Gadkari. This letter of Gadkari has come at a time when the Union Budget 2024 is being criticized from all sides. From common people to the industry, no one showed any enthusiasm about this budget. In such a situation, Gadkari’s demand will be considered a kind of criticism.
Gadkari has written, “The employees union believes that a person who covers the risk of uncertainties of life to give some security to the family should not be taxed on the premium for buying cover against this risk. Similarly, 18% GST on medical insurance (mediclaim policy) premium is hindering the growth of this sector. Socially it is necessary that GST be withdrawn from these.”
The Insurance Employees Union has raised this important issue. Common people have also been repeatedly asking the government for a long time the reason for imposing GST on mediclaim policy and life insurance policy. People said that if the government talks about public welfare, then why GST on these two insurance premiums. Private hospitals have already made treatment expensive due to mediclaim policy. People’s condition is bad due to levying GST on it. The public has to pay this GST twice, once while paying the premium of mediclaim policy and once while paying the bill for treatment. Gadkari also said that the employees’ union that met him also raised issues related to differential treatment for savings through life insurance, income tax deduction for health insurance premium, integration of public and regional general insurance companies.
Gadkari wrote at the end of the letter – “In view of the above, you are requested to consider the suggestion of removing GST on life and medical insurance premium on priority basis as it is also a burden for senior citizens.”
Gadkari is the only minister in the Modi government who has a different image and is known for speaking the truth. The issue of GST on mediclaim and life insurance can become serious in the country. After Gadkari, the opposition can also emphasize on this issue. Now an atmosphere will be created against paying GST twice on mediclaim. As mentioned above – GST has to be paid while taking a mediclaim policy, then GST has to be paid while paying the bill in the hospital. In such a situation, mediclaim holders pay GST twice.
