Excelsior Correspondent
JAMMU, Sept 7: LIC employees from J&K represented by Northern Zone Insurance Employees’ Association Srinagar Division submitted 40,000 signatures to the Minister for Finance Govt of India with copy to J&K Finance Minister Haseeb Drabu, Member GST Council, demanding removal of GST on Life Insurance premium.
This was done on the call of All India Insurance Employees’ Association as a result of which signature campaign was launched all over India from August Ist, 2017 to August 31, 2017 to obtain signatures from policy holders and public demanding removal of GST on life Insurance premium.
The signature campaign in J&K was led by Pawan Gupta and A M Tantray, Divisional secretary and president of NZIEA, Srinagar Division, respectively. The AIIEA had earlier also appealed the Govt of India not to levy GST on Life Insurance Premium, but unfortunately it was rolled out by the Govt. It is a big disappointment for policy-holders that 18% of GST has been rolled out on Term Insurance, Health Insurance and ULIP policies. The GST on new business premium including single premium of Life and Pension products has been fixed at 4.5 % while GST of 2.25 % is fixed for renewal premium and 1.8% for single premium policies.
” We feel it is unfair to impose tax when a person tries to save little amount for security of his family. Imposing GST on life insurance products and premium will be burdensome and also a huge disincentive for savings. It will be an impediment for the growth of the insurance industry. We strongly feel that life insurance industry should be given a preferential treatment in matters of taxation and removal of GST on life insurance products/ premium will go a long way in helping people to get the essential need of the life coverage,” they added.
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