IRDA chief to discuss taxation issues with Chidambaram
Mumbai: IRDA Chairman J Hari Narayan will meet Finance Minister P Chidambaram on Wednesday to resolve various taxation issues and speed up the growth of the sector.
"There are a list of issues, which will be further discussed in another meeting with the Finance Minister on Wednesday, like income tax, service tax. We believe that certain tax measures will be helpful for the growth of the industry," he told reporters on the sidelines of an Assocham event here.
Government is trying to revive investor interest in financial instruments to curb demand for gold. Earlier this month, Financial Services Secretary D K Mittal also met the Chairman of the Insurance Regulatory and Development Authority (IRDA) to discuss revival measures for the industry.
While the meeting had discussed the possibility of relaxing norms for insurance companies to attract more funds for the infrastructure sector, sources said that the industry has been pressing for reduction of service tax on insurance premium.
Life insurance products are gradually becoming less attractive to investors and stringent regulatory norms are acting as deterrent for marketing of such products.
The government wants to promote insurance and other financial products to curb gold imports which has been putting pressure on the current account deficit (CAD).