'Sure sign of ... ': On Nitin Gadkari's letter to Sitharaman, Congress takes 'dissent' jibe

NEW DELHI: The Congress on Wednesday targeted the BJP over road transport and highways minister Nitin Gadkari's letter to finance minister Nirmala Sitharaman, calling it a "sure sign of internal dissent and rumblings" against Prime Minister Narendra Modi. In his letter, Gadkari requested Sitharaman to withdraw the 18 per cent Goods and Services Tax (GST) on life and medical insurance premiums.
Union minister Nitin Gadkari relayed the concerns of the Nagpur Division Life Insurance Corporation Employees Union, which had presented him a memorandum addressing issues in the insurance industry.
Referring to the memo regarding issues in the insurance industry, road transport and highway 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 protect their family should not be taxed on the premiums paid to purchase this cover."
Congress general secretary Jairam Ramesh responded on X, sharing Gadkari's letter as indicative of dissent within the government. Ramesh said, "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 elaborated on the issues raised by the union, focusing on the GST withdrawal for life and medical insurance premiums. He also mentioned concerns over differential treatment of savings through life insurance, the re-introduction of income tax deductions for health insurance premiums, and the consolidation of public sector general insurance companies.
Both life insurance and medical insurance premiums currently face an 18 percent GST rate, a point of contention highlighted by the union and addressed by Gadkari in his request to the finance minister.
Meanwhile, Congress MP Karti Chidambaram also took a jab at the BJP, expressing approval that Gadkari had called on the finance minister to remove the GST on insurance. Chidambaram highlighted that he had previously suggested the same during the Budget debate in the Lok Sabha.
"I am very happy that Cabinet Minister Mr Gadkari has endorsed my demand that I made yesterday on the floor of the House to remove the 18 per cent GST levied on Health and Life Insurance premium," Chidambaram said.
He further added, "We are a very under-insured country, and we must encourage people to insure themselves. By levying GST you are making the premiums expensive. You must treat insurance not only as a social cover but also as a mode of saving. So they should remove the GST."