Nitin Gadkari seeks removal of 18 per cent GST on Life, Health Insurance Premiums; writes to FM Sitharaman

He contended that taxing life insurance premiums essentially taxes the very act of preparing for unforeseen circumstances, which is counter-productive to the objective of providing financial security.

The memorandum also expressed concerns that the 18 per cent GST on medical insurance premiums acts as a significant barrier to the growth of this crucial segment.

The high tax rate discourages individuals from investing in medical insurance, despite its crucial role in ensuring public health and financial stability during medical emergencies, Nitin Gadkari's letter states, adds IANS.

In addition to the GST issue, "The insurance union has also raised points related to differential treatment to savings by way of life insurance, the re-introduction of IT deductions for health insurance premiums, and the consolidation of public general insurance companies", the letter added.  

Medical Dialogues team had earlier reported that Union Finance Minister Nirmala Sitharaman has allocated ₹90,958.63 crore for the healthcare sector in addition to ₹3,712.49 crore for the AYUSH Ministry in the budget for 2024-2025. The last year it was ₹80,517.62 crore for the Ministry of Health and Family Welfare, and ₹3,647.50 crore for the AYUSH Ministry.