Budget Row
Budget 2024: Nitin Gadkari urges Nirmala Sitharaman to withdraw tax on life insurance premium
New Delhi/IBNS: In what would be a reason for the Centre's discomfort, Union Minister Nitin Gadkari has questioned Finance Minister Nirmala Sitharaman's levying of tax on life insurance premium in the Budget 2024.
Gadkari, a senior Bharatiya Janata Party (BJP) leader, has requested Sitharaman to withdraw the GST imposed on premiums for life and medical insurance plans.
The Road Transport and Highways Minister said he wrote a letter to the Union Finance Minister after receiving a memorandum from the Nagpur Divisional Life Insurance Corporation Employees Union.
Gadkari wrote in the letter as quoted by NDTV, "Main issue raised by the Union is related to withdrawal of GST on Life and Medical Insurance Premium.
"Both life insurance and medical insurance premiums attract a GST rate of 18 per cent. Levying GST on life insurance premium 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 some protection to the family should not be levied tax on the premium to purchase cover against this risk.
"Similarly, the 18% GST on medical insurance premium is proving to be a deterrent for the growth of this segment of business, which is socially necessary. Therefore, they have urged withdrawal of GST as mentioned above," he added.
"In view of the above, you are requested to consider the suggestion of Withdrawal of GST on Life and Medical Insurance Premium on priority as it becomes cumbersome for the senior citizens as per rules with due verification along with other relevant points raised," the minister wrote to Sitharaman.
Gadkari's letter comes after several opposition parties have slammed the Union Budget 2024 calling it "biased" towards Andhra Pradesh and Bihar, which are ruled by the crucial allies of the BJP.
While Andhra Pradesh is ruled by Telugu Desam Party, Bihar is run by Janata Dal (United). The two parties have 16 and 12 MPs respectively in the central government.
Delivering the Union Budget 2024, Sitharaman announced Special Financial Support for Andhra Pradesh, where Rs 15,000 crore have been directed with additional amounts in coming years.
For Bihar, Sitharaman announced support for the development of an industrial node in Gaya on the Amritsar-Kolkata industrial corridor.
The government will, as the Finance Minister said, support the several road connectivity projects, Patna Purnea Expressway; Buxar Bhagalpur Expressway; Bodh Gaya, Rajgir, Vaishali and Darbhanga spars.
An additional tooling bridge over River Ganga at Buxar at a total cost of 26,000 crore was announced.
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