Target GST relief on life, medical insurance smartly to boost accessibility

Tax relief should target pre-packaged term and health policies, ensuring availability to seniors and those with impaired health, thereby reducing their costs

In the early 2000s, it was widely anticipated that the government would reduce the excise duty on cars in the upcoming Budget. As a result, demand for cars was tepid, with buyers choosing to wait for the Budget announcement. I was somewhat surprised that, in this environment, auto companies chose to raise prices. Then the penny dropped. The total price would inevitably drop once the duty cut was announced. The pre-emptive increase in price allowed auto companies to appropriate part of the duty cut that should rightfully have benefitted car buyers.

I recalled this incident while reading