Union Minister Nitin Gadkari has expressed discomfort over the Finance Minister's decision to impose a GST on life and medical insurance premiums, citing it as a burden and deterrent for growth. This statement comes in the wake of criticism by opposition parties who have labeled the Union Budget 2024 as biased towards BJP's allies in Andhra Pradesh and Bihar. The BJP leader has urged for the withdrawal of this tax on priority and hopes for a consideration of his suggestion.
Union Minister Nitin Gadkari Expresses Discomfort over GST on Insurance Premiums
Background
On February 1, 2023, Union Finance Minister Nirmala Sitharaman presented the Union Budget 2024, which included a proposal to impose a Goods and Services Tax (GST) of 5% on life and medical insurance premiums. This proposal has drawn criticism from various quarters, including the opposition parties and Union Minister Nitin Gadkari.
Nitin Gadkari's Discomfort
Union Minister Nitin Gadkari, who holds the portfolios of Road Transport and Highways and Shipping, has expressed discomfort with the proposed GST on insurance premiums. He has cited concerns that it will burden the middle and low-income groups and discourage people from taking adequate insurance coverage.
Gadkari has urged the government to reconsider this decision and withdraw the proposed tax. He believes that it is crucial to promote insurance penetration in India, especially in rural and underserved areas.
Opposition Parties' Criticism
Opposition parties have also criticized the Union Budget for its perceived bias towards BJP's allies in Andhra Pradesh and Bihar. They have accused the government of ignoring the needs of other states and favoring those where BJP has strong political interests.
Gadkari's Suggestion
Gadkari has suggested that the government hold consultations with the insurance sector and other stakeholders before making a final decision on the GST on insurance premiums. He has also expressed hope that his concerns will be considered by the government.
Top 5 FAQs
1. Why is the GST on insurance premiums being proposed?
The GST on insurance premiums is proposed as part of the government's efforts to broaden the tax base and increase revenue.
2. How much GST will be imposed on insurance premiums?
The proposed GST rate on insurance premiums is 5%.
3. Who will be affected by the GST on insurance premiums?
The GST on insurance premiums will affect all individuals and businesses who take out insurance policies, including life insurance, health insurance, and general insurance.
4. What is the impact of the GST on insurance premiums?
The GST on insurance premiums will increase the cost of insurance policies, which could discourage people from taking out adequate insurance coverage.
5. What is the government's response to the concerns raised by Nitin Gadkari?
The government has not yet issued an official response to Nitin Gadkari's concerns, but it is likely to consider his suggestions and engage in consultations with the insurance sector before making a final decision.
President Droupadi Murmu has nominated veteran public prosecutor Ujjwal Nikam to the Rajya Sabha, recognizing his exceptional contributions to the Indian judicial system. With a career spanning over four decades, Nikam has established a respectable reputation for prosecuting high-profile criminal cases, particularly those involving terrorism and national security. His nomination is seen as a move to bring legal expertise and prosecutorial experience to the legislative domain, and Nikam is expected to contribute significantly to legal reforms and national security discussions in Parliament.
Former Indian Foreign Secretary Harsh Vardhan Shringla and historian Meenakshi Jain have been nominated to the Rajya Sabha, the Upper House of the Indian Parliament. Shringla, who has a distinguished career as a diplomat and served as India's foreign secretary, brings his unique perspectives to the Upper House, while Jain, who has been recognized for her work in history, education, and literature, will add valuable insights to parliamentary proceedings. Both nominees have been congratulated by Prime Minister Narendra Modi on their nomination, highlighting their expertise and contributions to their respective fields.
The Rajya Sabha is set to witness a major shake-up in 2026 with 75 seats up for election, including those of Congress president Mallikarjun Kharge, former Prime Minister HD Deve Gowda, and two key ministers from Uttar Pradesh. Maharashtra, Jharkhand, and Andhra Pradesh will also see significant changes with leaders like Sharad Pawar, Shibu Soren, and Sana Satish Babu retiring. The upcoming elections will have a significant impact on the composition of the Upper House.
Lord Neil Kinnock, former leader of the Labour Party, has suggested imposing a 2% tax on assets worth more than £10 million. This move could potentially provide the government with an estimated £10-11 billion in additional revenue. However, a No10 source has distanced the government from the idea, stating that Lord Kinnock was expressing his personal views. The call for a wealth tax comes amidst pressure on the Chancellor to balance the budget after U-turns on cuts to disability benefits and winter fuel payments.
The Indian President has made four nominations to the Rajya Sabha under Article 80(1)(a) of the Constitution to fill vacancies left by retired members. These nominations include well-known Bharatiya Janata Party leader and advocate Ujjwal Nikam, who previously served as a special public prosecutor in high-profile cases. These fresh appointments are crucial for the Rajya Sabha to have diverse expertise and perspectives from individuals with special knowledge or practical experience in fields such as literature, science, art, and social service.
Amid the chaos surrounding the passage of the Republican tax bill, the fate of Mason General Hospital in Washington state hung in the balance. Providers are now bracing for the long-term effects of the "One Big Beautiful" bill, which could lead to millions of Americans losing their health insurance by 2034. With Washington expected to be among the hardest hit, experts warn of potential service cutbacks, layoffs, and even closure of hospitals. The devastating impacts will not only affect Medicaid beneficiaries, but also all Washingtonians' access to healthcare.
Karnataka has passed a controversial bill that seeks to curb the spread of fake news on social media, empowering a committee headed by the state Information & Broadcasting Minister to identify and penalize offenders. Social media users found guilty of posting "fake news" could face up to seven years in prison and a hefty fine of Rs 10 lakh. However, critics argue that the bill's vague and broad definitions of fake news and misinformation could lead to the suppression of free speech and artistic expression. This comes after a similar provision in the amended IT Rules 2021 was struck down by the Bombay High Court for lacking judicial oversight, raising concerns about government overreach.
In her new book, "Butler," veteran political reporter Salena Zito sheds light on the one element that mainstream media has missed in their coverage of President Trump's rallies - his authentic interactions with the often unseen workers who make his events possible. Zito shares firsthand accounts and insights from her interviews with Trump during his 2016 campaign, leading up to his successful 2024 reelection bid. She also highlights the enthusiasm and engagement of young voters who were drawn to Trump's message of Americanism and national unity.
The Indian government has released the initial report of the investigation into the Air India-171 crash, which killed 241 passengers on June 12. The report, released by the Aircraft Accident Investigation Bureau (AAIB), cites a dual-engine shutdown just seconds after take-off as the cause of the tragedy. The data recovered from the cockpit voice recording reveals a conversation between the two pilots discussing the sudden engine failure. While the report does not assign any blame, its main purpose is to prevent future accidents and incidents.
On Day 2 of the second Test between India and England at Lord's, Jasprit Bumrah picked up his 13th five-wicket haul in away Tests, becoming the most prolific Indian bowler in this regard. However, England fought back through half-centuries from Brydon Carse and Jamie Smith, who helped them reach a respectable total of 387 in their first innings. India's openers, KL Rahul and Karun Nair, showed resilience and took their team to Tea at 44 for 1, trailing by 343 runs.