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What is the rationale for imposing Goods and Services Tax (GST) on MediShield Life premiums?

We have a broad-based Goods and Services Tax (GST) system, with minimal exemptions as this approach helps to keep the GST rate relatively low. GST is a tax on domestic consumption of goods and services, and is payable on insurance contracts such as health, motor, and fire insurance. GST is therefore payable on premiums for MediShield Life.