Lower GST on Insurance May Not Benefit Buyers, Experts Warn

Recent suggestions to reduce GST on insurance products from 18% to 12% may not significantly benefit policyholders, experts caution. Despite the proposed lower tax rate, the actual savings on premiums could be minimal as insurers may not pass on the full benefits to consumers. Insurers face operational costs that might neutralize the effect of lower GST. Additionally, this change could only affect specific categories of insurance, limiting its overall impact. The government is encouraged to re-examine how GST reductions are implemented in the insurance sector.