Senior Congress leader V M Sudheeran in a letter addressed to Finance Minister Thomas Isaac said that implementing GST at a high rate on insurance policies and associated service sectors would amount to inflicting higher tax burden on policyholders. He said that this would lead to a huge reduction of funds from the insurance sector for the nation-building process.
Sudheeran said that in general insurance, life insurance, and group insurance, GST at the rate of 18 percent was levied and the same rate was applicable in the health insurance sector also and added that there was a hike in GST for nomination, assessment, and duplicate policy services.
He called upon the state finance minister to take the initiative for reducing GST charges on insurance policies and allied services. “Thomas Isaac must raise this matter in the next GST council meeting and take efforts to solve this issue and save the insurance sector,” Sudheeran said.