Nitin Gadkari: Union Minister and prominent BJP leader Nitin Gadkari has urged Finance Minister Nirmala Sitharaman to reevaluate the GST levied on life and health insurance premiums amidst the continuous criticism directed on Budget 2024.
Highlighting Concerns from Nagpur
In his letter, Mr. Gadkari referenced a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union. The Union’s main concern revolves around the 18% GST on both life and medical insurance premiums. “Levying GST on life insurance premium amounts to levying tax on the uncertainties of life,” Mr. Gadkari wrote, emphasizing the union’s stance.
Impact on Common People
According to the Union, imposing a tax on premiums places an additional financial strain on people trying to protect their families from life’s difficulties. They contend that people shouldn’t have to pay taxes for attempting to keep their loved ones safe. Furthermore, it is believed that the 18% GST on medical insurance premiums will hinder the expansion of the insurance industry, which is vital to society.
Additional Points Raised
The union also raised other important issues, including the need to reintroduce IT deductions for health insurance premiums, the disparate treatment of savings through life insurance, and the merging of general insurance businesses in the public and private sectors. Mr. Gadkari has asked the Finance Minister to give these issues top priority, especially the elimination of the GST on insurance premiums, which has made things difficult for senior citizens.
Budget 2024 Under Scrutiny
The letter from Mr. Gadkari is being received at a time when Budget 2024 is being criticised by a number of people. The government has been accused by the opposition of showing preference for states headed by TDP and JDU, two of its main supporters. There is a lot of discussion on social media about the high tax rates paid by salaried workers.
Response from the Finance Minister
The claims made by the Opposition have been refuted by Finance Minister Nirmala Sitharaman, who claims that money has been distributed to every state. She made it clear that disregard is not implied when a state’s name is omitted from the Budget Address. The Budget’s objectives are aimed at achieving the long-term objective of making India a developed country by 2047, as the BJP has emphasised.
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