Govt must remove ‘anti-people’ GST on life, health cover: CM
Times of India | 2 August 2024
Kolkata: CM Mamata Banerjee on Thursday upped the ante on Centre over GST on life insurance and medical insurance premiums and sought rollback of the “anti-people” tax component.
Her statement came a day after Union road transport and highways minister Nitin Gadkari urged finance minister Nirmala Sitharaman to consider suggestions to remove GST on life and health insurance premiums.
“Our demand to govt of India is to roll back GST on life insurance and medical insurance premiums on grounds of people’s health imperatives. This GST is bad because it adversely affects people’s ability to take care of their basic vital needs. If govt of India does not roll back the anti-people GST, we will be bound to hit the streets,” Banerjee posted on X.
Earlier in the day, the issue also brought about a rare Upper House camaraderie when TMC’s Rajya Sabha MP Dola Sen backed Gadkari’s demand to Sitharaman.
“We support Nitin Gadkari’s demand to roll back 18% GST on health insurance premiums. Finance minister, either withdraw this or resign,” Sen said in RS.
TMC’s Rajya Sabha MP Derek O’Brien said: “Govt had imposed 18% GST on life and health insurance premiums. Trinamool raised this in Parliament on July 29 and were the first to ask for its withdrawal for humanitarian reasons. Finance minister, withdraw this or resign.”
TMC spokesperson Saket Gokhale had raised this issue earlier in his Budget reply. Gadkari wrote about it to Sitharaman again on Wednesday. “Main issue raised by the Union is related to withdrawal of GST on life and medical insurance premiums. Both life insurance and medical insurance premiums attract a GST rate of 18%. Levying GST on life insurance premium amounts to levying tax on the uncertainties of life,” Gadkari wrote.
After Sen spoke in Rajya Sabha, Gokhale wrote: “We support Gadkari and demand that Sitharaman wi-thdraw this GST or resign.”