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Below is Post Budget Reaction From Mr. Praveen Vashishta, Chairman, Howden Insurance Brokers India Pvt. Ltd

“Kudos to the FM for delivering a growth-centric budget – the first budget of Amrit Kaal. The markets after giving an initial thumbs up have since petered down - typical of budget day reactions. To me, this is overall a win-win budget. With an increased capital outlay, the budget promotes ease of doing business, infrastructure growth, Agri-tech and a digital India. At the same time, the budget scores well on the social agenda – it promotes inclusive growth, women welfare, skilling, green energy, and green mobility. There is relief on the personal tax front including increase in rebate limit to Rs. 7 lakhs in the new tax regime and reduction in highest surcharge from 37% to 25%, thus bringing down the maximum rate to 39%.

We would have liked to see a few strategic announcements in the Insurance Sector- such as an Increase in FDI to 100%, reduction in Tax rate for Foreign Reinsurance Branches, and introduction of Captives. We were also expecting some Tax concessions such as reduction of GST rate on health & life insurance from 18% to 5%, creating a separate section for Life insurance premium exemptions instead of including it in an already crowded 80C and increase in the maximum deduction for tax benefits from health insurance premiums from Rs 50,000 to Rs 1 lakh under 80 D. With a forward-looking government, I am sanguine that we will see more on these areas in the time to come.”

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