Withdrawal of GST, merger of public Indian pharma firms seek govt tax reliefs, incentives to spur innovation sought
By: Admin
July 06, 2024
Categories: GST Recent News
4 Min Read
AIIEA Raichur Division Advocates for Key Insurance Reforms
Raichur, Karnataka – The All-India Insurance Employees’ Association (AIIEA), Raichur Division, has recently presented a comprehensive charter of demands to Ballari MP E. Tikaram, seeking crucial reforms in the insurance sector.
Key Demands:
Withdrawal of GST on Insurance Premiums
The association’s divisional president highlighted the pressing need to eliminate the 18% Goods and Services Tax (GST) on life and medical insurance premiums. This demand is backed by Jayant Sinha, the Chairperson of the Parliamentary Standing Committee on Finance, who also recommended a rationalization of GST on insurance products, particularly health and term insurance.
Reintroduction of Income Tax Deduction for Health Insurance
In the memorandum, the AIIEA urged the government to reintroduce income tax deductions for health insurance premiums. The deductions, previously available under Section 80(D), were discontinued in the new tax regime. Given the skyrocketing costs of healthcare, the association emphasized the critical need for health insurance and the financial relief that tax deductions could provide.
Merger of Public Sector General Insurance Companies
The association is calling for the merger of four major public sector general insurance companies:
The Oriental Insurance Company Ltd.
National Insurance Company Ltd.
The New India Assurance Company Ltd.
United India Insurance Company Ltd.
According to the AIIEA, this consolidation would streamline operations and enhance the efficiency of public sector insurers, ultimately benefiting policyholders.
Impact on Policyholders
These proposed changes aim to make insurance more affordable and accessible, especially in the current economic climate where healthcare costs are on the rise. Removing GST on premiums and reintroducing tax deductions would provide significant financial relief to policyholders. Additionally, merging the public sector insurers could lead to better service delivery and more competitive insurance products.
A Step Towards Comprehensive Reform
The AIIEA’s demands reflect a broader call for comprehensive reforms in the insurance sector. As insurance becomes increasingly essential for financial security, particularly in health and life coverage, these measures could play a pivotal role in ensuring that insurance remains a viable and accessible option for all citizens.
For further details on this development, visit the full article on The Hindu
Follow for daily news updates:
https://whatsapp.com/channel/0029VaPK2ZO5PO13lmYvx80Ahttp://Follow for daily news updates: https://whatsapp.com/channel/0029VaPK2ZO5PO13lmYvx80A