NEW DELHI: Union Finance Minister Nirmala Sitharaman on Thursday told the Rajya Sabha that Union Transport Minister Nitin Gadkari’s letter seeking the removal of 18 per cent GST on health and life insurance premium was released without permission.
“Some minister wrote a letter, and someone from the delegation made it public without the minister’s permission. The Opposition saw this as an opportunity,” she said.
Touching upon the matter, Sitharaman said it was in the realm of the GST Council. “Let the council take a call on medical insurance now that everyone has been heard on this. Prior to GST regime, every state levied taxes on the premiums collected on health insurance. The council comprises the finance ministers of the states who have two-third voting power, with the Centre having one-third power,” she pointed out.
Speaking about reports that Rs 24,529 crore was collected on medical insurance premium, Sitharaman said Rs 12,264 crore of the amount collected went to the states last fiscal.
Parliamentary approval for the Budget 2024-25 was completed on Thursday. Sitharaman dismissed the Opposition’s argument that net financial household savings were lowest. “The country is witnessing changes in portfolio diversification even for small accounts. The portfolios being selected are probably giving better returns. The people are also investing in property,” she said.
She also highlighted that the slabs for income tax were liberalised under the new tax regime in 2023, adding that all taxpayers had a reduced tax liability of Rs 37,500 crore.
The minister also called the Global Hunger Index “flawed”. “The index doesn’t explain how conflict-ridden countries like Mali, Burkino Faso and Sudan are higher than India in the index… People are standing in queue for corn and flour in Mali and flour in Pakistan,” she added.