I-T Loss Talk Slam Brakes On Eradi Report Move

Insurance premium rates on long-term products carrying guaranteed returns can drop only when the government decides to accept the recommendations of the three-year old V U Eradi (Tax) Committee report.

The removal of the existing 12.5 per cent tax will reduce premium pricing on long term non-participatory risk products, said Shikha Sharma, chief executive officer (CEO), ICICI Prudential Life Insurance Company. The Eradi Committee was set up to give recommendations pertaining to the taxation of life insurance companies.

Even as the then finance minister, Yashwant Sinha, had stated the government