India News | Opposition Leaders Support Gadkari's Demand to Withdraw GST on Insurance Premiums

New Delhi, Jul 31 (PTI) Several opposition leaders on Wednesday supported Road Transport and Highways Minister Nitin Gadkari's demand for withdrawing GST on insurance premiums, stating that it adds to the burden of the middle class.

As Gadkari requested Finance Minister Nirmala Sitharaman to withdraw the 18 per cent goods and services tax (GST) on life and medical insurance premiums, several opposition leaders backed the demand.

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Congress MP Karti Chidambaram said he is glad that Gadkari urged the finance minister to remove GST on insurance, and said he had also made the same suggestion in Lok Sabha during the Budget debate.

"I am very happy that Cabinet Minister Mr Gadkari has endorsed my demand that I made yesterday on the floor of the House to remove the 18 per cent GST levied on Health and Life Insurance premium," Chidambaram said.

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"We are a very under-insured country, and we must encourage people to insure themselves. By levying GST you are making the premiums expensive. You must treat insurance not only as a social cover but also as a mode of saving. So they should remove the GST," he said.

Chidambaram also shared on X a video of his speech made in Lok Sabha on Tuesday, where he demanded for the GST on insurance to be removed.

Samajwadi Party MP Rajeev Kumar Rai, while backing the demand, said Gadkari, despite being a senior minister in the government, had to write to the finance minister over the issue, which is an indication of the "autocratic" attitude of the government.

"GST on insurance premium should be abolished. This has been our demand since long. We support Nitin Gadkari ji's demand," he said.

"This also proves that this government does not consult its senior ministers while making the budget. Gadkari is one of the senior most ministers, (still) he had to write a letter. This shows the autocratic attitude of the government," he said.

Rashtriya Janata Dal (RJD) MP A D Singh backed the demand, and said, "GST on health insurance should be abolished. Gadkari ji has given the suggestion he found appropriate. The finance minister should see how much it will benefit the people and take a decision."

Supporting the demand, Shiv Sena (UBT) MP Anil Desai said he had also raised the issue in his speech during the budget debate.

"It is a good suggestion. When I spoke on the budget, I had also raised the issue that life insurance and medi-claims are an important requirement for the middle class and especially for the retired people," he said.

"It is not about comfort or luxury. It is a necessity. Healthcare is anyhow outside the reach of the middle class.

"Even when Nirmala ji replied, I had asked her about this, but she did not comment on it. I am hoping she will pay attention to the issue," he said.

Congress MP Hibi Eden spoke on similar lines.

"We have been constantly demanding the same. The finance minister was talking about various schemes of insurance that the central government was providing. Apart from that, the GST on health insurance is something we have raised in the past also. We support Gadkari ji's request," he said.

Both life insurance and medical insurance premiums are subject to an 18 per cent GST rate.

In his letter to the finance minister, Gadkari raised concerns of the Nagpur Division Life Insurance Corporation Employees Union, which had submitted to him a memorandum regarding the issues of the insurance industry.

Referring to the memo, the minister said, "Levying GST on life insurance premiums amounts to levying tax on the uncertainties of life. The Union feels that the person who covers the risk of life's uncertainties to give protection to the family should not be levied tax on the premiums to purchase cover against this risk."

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)