Insurance Industry Seeks Key Tax Reliefs and GST Reduction in Upcoming Budget

The Indian insurance industry has submitted a request for key tax reliefs and a reduction in GST in the upcoming Union Budget for FY26. Key demands include a reduction in the GST rate from 18% to 12% on insurance premiums, which would help reduce the financial burden on policyholders. The industry also seeks tax deductions for policyholders to encourage more investment in life insurance and health policies. With the sector grappling with challenges such as high taxes and low penetration, the tax reliefs are seen as a much-needed measure to boost growth and increase consumer participation in insurance products. This could provide a significant boost to the industry, which has a crucial role in increasing India’s insurance penetration rate and financial security.