Internal dissent, rumblings against PM: Congress on Gadkari's letter to FM

The Congress on Wednesday took a swipe at the BJP over Union road transport and highways minister Nitin Gadkari's letter to Union finance minister Nirmala Sitharaman, saying it is a "sure sign of internal dissent and rumblings" against Prime Minister Narendra Modi.

Gadkari has requested Sitharaman to withdraw the 18 per cent goods and services tax (GST) on life and medical insurance premiums.

In his letter to the finance minister, Gadkari raised concerns of the Nagpur Division Life Insurance Corporation Employees Union, which had submitted a memorandum to him regarding the issues of the insurance industry.

Referring to the memo, the minister said, "Levying GST on life insurance premiums amounts to levying tax on the uncertainties of life. The Union feels that the person who covers the risk of life's uncertainties to give protection to the family should not be levied tax on the premiums to purchase cover against this risk."

Tagging Gadkari's letter, Congress MP and general-secretary (communications) Jairam Ramesh said on X, "Mr. Nitin Jairam Gadkari's letter to the FM on the Budget is a sure sign of internal dissent and rumblings against the non-biological PM."

In his letter, Gadkari said the main issue raised by the employees' union is related to the withdrawal of GST on life and medical insurance premiums. Gadkari also pointed out that the union has also raised issues related to differential treatment to savings through life insurance, re-introduction of income tax deduction for health insurance premiums, and consolidation of public sector general insurance companies.

Both life insurance and medical insurance premiums are subject to an 18 per cent GST rate.