new delhi insurance regulator irda has asked for bringing about levelplaying field between unit linked investment products of life insurers and mutual fund schemes in terms of service tax in the budgetwe would like levelplaying field in terms of service tax between ulip and mutual fund schemes insurance regulatory development authority irda chairman j harinaryan told media hereharinarayan also demanded the government to bring long term 1520 years debt securities in the market besides he said the government should consider giving preference to longterm investment 78 years within rs one lakh saving limit for income tax exemption purposesinsurance companies are asking for limiting service tax on the ulip products to only fund management charges they say service tax on entire range of charges on ulip schemes would widen the disparity between ulip and mutual fund schemesat present service tax on mutual funds is levied on asset management charge insurers said in case of ulip the service tax should be levied on fund management charge which is comparable to the asset management charge of mutual fundsin ulip schemes service tax is imposed on the entire amount that the insurer keeps including premium allocation other charges after deduction of mortality charges mortality charge is the money deducted from premium by an insurer for providing insurance and other expenses and it increases with the age of policy holderpremium allocation charge is the portion of initial premium deducted for administration charges service tax is now imposed at the rate of 10 per cent after the government reduced the levy by two per cent in the third stimulus packagethe budget is likely to be presented on july 3