NEW DELHI, Sept 9 (Askume) – India’s Goods and Services Tax Board has reached a consensus among its members on the need to reduce taxes on health and life insurance premiums, an official said on Monday.
Finance Minister Nirmala Sitharaman said at a press conference that no decision was taken at the Council meeting but a panel of ministers will submit a report by the end of next month and the Council will take up the issue again at its November meeting.
The committee, headed by the Finance Minister, along with other state ministers, decides on any changes to India’s indirect tax regime implemented in 2017.
India’s 18% tax on health and life insurance premiums has been criticized by some taxpayers on social media, who say the government is wrong to tax life’s uncertainties. A government minister spoke out against the tax in a letter leaked to the media.
A person familiar with the matter told Askume that the government plans to impose additional taxes on some items such as high-end cars, tobacco products, sparkling drinks and coal. The additional taxes will expire in March 2026 but will continue to be levied even after this date, sources said.
