New Delhi, July 31 (The Street Press India) – On Wednesday, several opposition leaders supported Road Transport and Highways Minister Nitin Gadkari’s call to remove GST on insurance premiums, arguing that it burdens the middle class.
Gadkari urged Finance Minister Nirmala Sitharaman to eliminate the 18 percent GST on life and medical insurance premiums. Opposition leaders quickly rallied behind this demand.
Congress MP Karti Chidambaram expressed his support for Gadkari’s request, stating he is glad the minister urged the finance minister to remove GST on insurance. Chidambaram mentioned that he had also made the same suggestion during the Budget debate in the Lok Sabha.
“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.
“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,” Chidambaram said.
Chidambaram also shared a video on X of his speech in the Lok Sabha on Tuesday, where he demanded the removal of GST on insurance.
Samajwadi Party MP Rajeev Kumar Rai also supported the demand, noting that Gadkari, despite being a senior minister in the government, had to write to the finance minister over the issue. Rai said this indicates 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,” Rai 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 added.
Rashtriya Janata Dal (RJD) MP A D Singh also backed the demand, saying, “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 mentioned 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,” Desai 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 added.
Congress MP Hibi Eden echoed similar sentiments.
“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 percent GST rate.
In his letter to the finance minister, Gadkari raised the concerns of the Nagpur Division Life Insurance Corporation Employees Union, which had submitted a memorandum regarding issues in the insurance industry.
Referring to the memo, Gadkari stated, “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.”
