Finance Desk – The GST Council has created a special team to review the tax rates on health and life insurance. This team, made up of 13 members, will share their recommendations by October 30. Currently, insurance premiums are taxed at 18%.
Led by Bihar’s Deputy Chief Minister Samrat Choudhary, the team includes representatives from various states like Uttar Pradesh, Rajasthan, and West Bengal. They will consider how much tax should be charged on different types of insurance.
Some states suggest removing the tax on insurance completely to make it cheaper, while others suggest reducing the tax to 5%. The GST Council will make a decision on these suggestions at their next meeting in November.
Last year, the government collected over Rs 8,262 crore from health insurance taxes. The aim of this review is to make insurance more affordable for people in India, where fewer people have insurance compared to countries like the United Kingdom and the United States.
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