Union Minister Nitin Gadkari has urged the elimination of the 18% Goods and Services Tax (GST) on life and medical insurance premiums. In a letter dated July 28 to Finance Minister Nirmala Sitharaman, Gadkari argued that taxing these premiums burdens senior citizens and hampers the insurance sector's growth.

Gadkari emphasized, "Taxing life's uncertainties through GST on life and medical insurance premiums is a significant deterrent." Both types of premiums currently attract an 18% GST.

He stated, "The 18% GST on medical insurance premiums hinders the growth of this crucial business segment, which is socially essential."

Gadkari's letter responded to a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union, which highlighted industry challenges. Representing Nagpur in the Lok Sabha, Gadkari echoed the union's concerns, saying, "Levying GST on life insurance premiums taxes the uncertainties of life. Those who secure their family's future through insurance should not face this tax burden."

The union also noted "differential treatment of savings through life insurance, reintroduction of income tax deductions for health insurance premiums, and consolidation of public sector general insurance companies."

The GST Council, which oversees tax decisions, is set to meet in August, following its last meeting on June 22.