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Withdrawal of GST, merger of public sector insurance companies sought

Members of All-India Insurance Employees’ Association (AIIEA), Raichur Division, submitted a charter of demands to Ballari MP E. Tikaram on Saturday.

Divisional president of the association M. Sharanagouda in a memorandum demanded the government withdraw the Goods and Services Tax (GST) on Life and Medical Insurance premium. Both life insurance and medical insurance premiums attract a GST rate of 18%. He said that the Chairperson of the Parliamentary Standing Committee on Finance and the former Minister of State for Finance Jayant Sinha had also recommended the need to rationalise the GST on insurance products, especially health and term insurance.

The demands also included re-introduction of income tax deduction for health insurance premium. The deduction allowed under Section 80 (D) towards health insurance premium has been discontinued in the new tax regime. Health insurance has become an imperative need today in view of increasing costs of healthcare facilities. The association urged the government to re-introduce income tax deduction in the new tax regime.

The association also demanded the merger of all four public sector general insurance companies – The Oriental Insurance Company Ltd., National Insurance Company Ltd., The New India Assurance Company Ltd. and United India Insurance Company Ltd.

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