NEW DELHI: A panel of Indian state ministers on goods and services tax (GST) has proposed exempting tax on health and life insurance premiums for individuals, two state ministers told reporters on Wednesday.
The panel met days after Prime Minister Narendra Modi announced sweeping cuts to the GST to boost India’s economy in the face of trade conflict with Washington.
The panel of state ministers has proposed exempting health and life insurance premiums for individuals from the current 18%, the deputy chief minister of Bihar state, Samrat Chaudhary, said after the meeting in New Delhi.
The final decision will be taken by the GST council, which is chaired by the federal finance minister and includes all state finance ministers as members.
India’s tax restructuring a ‘huge reform’, will boost competitiveness, Maruti Suzuki chair says
The GST council meeting is expected in September or October, before the Hindu festival of Diwali, which is the country’s biggest shopping season.
The panel expects a revenue loss of 97 billion rupees ($1.11 billion) if health and life insurance premiums for individuals are exempted from GST, added Mallu Bhatti Vikramarka, a minister from the southern state of Telangana.
In the next GST council meeting, the ministers are also expected to decide on the biggest overhaul of the tax regime since its introduction in 2017.
Comments
Comments are closed for this article.