Insurance regulator Irda has asked for bringing about level-playing field between unit linked investment products of life insurers and mutual fund schemes in terms of service tax in the Budget.
“We would like level-playing field in terms of service tax between Ulip and mutual fund schemes,” Insurance Regulatory Development Authority (Irda) Chairman J Harinarayan said in New Delhi.
Harinarayan also demanded the government to bring long term debt securities in the market. Besides, he said the government should consider giving preference to long-term investment, 7-8 years, within Rs 1 lakh saving limit for income tax exemption purposes.
Insurance companies are asking for limiting service tax on the Ulip products to only fund management charges. They say service tax on entire range of charges on Ulip schemes would widen the disparity between Ulip and mutual fund schemes. At present, service tax on mutual funds is levied on asset management charge.
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