The core idea in this Article is to bring in a healthy debate as to whether the Government Policy of levying Service Tax on Life Insurance premiums is a desirable practice to the nation. When Finance Act of 1994 was passed with the new concept of Taxation on services the then Finance Minister himself would not have probably envisaged the monstrous size of the tax which was unleashed and the short gestation period it could take to surpass the Direct tax mop up.
