The GST Council, led by Finance Minister Nirmala Sitharaman, is set to meet on Monday to tackle several pressing issues, with the spotlight on reducing the 18% GST on health and life insurance premiums.
While there is growing support for lowering the tax burden, concerns remain over whether the benefits will actually reach policyholders or stay with the insurance companies.
One of the key worries is that even if GST is cut, insurers may keep the financial benefits instead of passing them on to consumers.
Companies have raised premiums post-COVID, citing higher claims, and many state ministers fear this practice will continue even if GST is reduced. With anti-profiteering laws no longer active, there's little guarantee that a tax cut will translate into lower premiums for policyholders.
One proposal under discussion is to provide tax relief for insurance policies with annual premiums between ₹50,000 and ₹60,000. However, this may not significantly help most middle-class families.
Ganesh Chaturthi 2024 Special: 5 ways to welcome financial prosperity into your life
Ganesh Chaturthi marks the beginning of the festive season in India, a time associated with new beginnings and prosperity. It's an auspicious period to reflect on your financial journey and make informed decisions that align with the blessings of Lord Ganesha. Market activity typically increases during this season, offering growth opportunities.
Recent data supports this festive financial optimism. According to Disney+ Hotstar's Festive Shopping Sentiment Survey, consumer spending is expected to surge by 47% compared to last year. Millennials are at the forefront, with women shoppers projected to increase their budgets by 70%, focusing on categories like clothing, mobile phones, food, and beauty products. This festive momentum makes Ganesh Chaturthi an ideal time to reassess and realign your financial strategies.
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