Political Jibes & Policy Letters: Congress Leader Jairam Ramesh Takes A Shot At Nitin Gadkari’s Letter To Sitharaman, Says 'Sure Sign Of Internal Dissent'

The Congress general secretary Jairam Ramesh recently made a statement on the social media platform X, formerly Twitter, hitting at the possible internal unrest within the Bhartiya Janata Party (BJP) on Wednesday (July 31).

Jairam Ramesh comment came in response to a letter written by Union Road Transport and Highways Minister Nitin Gadkari to Finance Minister Nirmala Sitharaman.

Jairam Ramesh, in his post wrote, "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."

About the Letter

The letter in question, dated July 28, calls for the removal of the 18 per cent Goods and Services Tax (GST) on life and medical insurance premiums.

Gadkari's plea to Sitharaman was in response to a memorandum he received from the Nagpur Divisional Life Insurance Corporation Employees Union, which highlighted about significant concerns within the insurance industry.

"The main issue raised by the Union was about the withdrawal of GST on life and medical insurance premiums. Both life insurance and medical insurance premiums attract a GST rate of 18 percent. Levying GST on life insurance premiums amounts to taxing the uncertainties of life," Gadkari said in the letter to the Finance Minister.

"The Union feels that the person who covers the risk of life's uncertainties to provide some protection to the family should not be taxed on the premium to purchase cover against this risk. Similarly, the 18% GST on medical insurance premiums is proving to be a deterrent to the growth of this segment of business, which is socially necessary. Therefore, they have urged the withdrawal of GST as mentioned above," he added.

In his closing remarks to Sitharaman, Gadkari wrote in the letter, "You are requested to consider the suggestion of withdrawing the GST on life and medical insurance premiums on priority, as it becomes cumbersome for senior citizens per rules with due verification, along with other relevant points raised."