Tax Exemption Plea in Insurance Sector: A Strategic Move?

LIC Managing Director Ratnakar Patnaik advocates for GST exemption on insurance to claim input tax credits and seeks review on tax policies for maturity proceeds. NSE's chief criticizes strict rules for foreign portfolio investors and calls for standardized market data.

In a strategic move to enhance operational efficiencies, LIC Managing Director Ratnakar Patnaik has urged the government to exempt the life insurance sector from the Goods and Services Tax (GST). Patnaik believes that such an exemption would enable insurers to claim input tax credits, bolstering their financial stability.

Patnaik also praised the government's recent decision to eliminate GST on individual life and health insurance premiums beginning September 2025. Additionally, he called for reconsideration of the policy taxing maturity proceeds for insurance policies with premiums exceeding Rs 5 lakh, proposing the limit be increased to Rs 10 lakh.

Meanwhile, NSE Managing Director Ashishkumar Chauhan criticized the stringent regulations for foreign portfolio investors, arguing that excessive data demands deter investors. He advocated for a standardized approach to market data presentation, emphasizing the need for accurate statistics to inform effective policy-making.

(With inputs from agencies.)