Will protest on road if Centre does not remove GST on life, medical insurance: Mamata
Indian Express | 4 August 2024
TERMING THE Centre’s decision to impose 18 per cent Good and Services Tax (GST) on life insurance and health insurance policies as “anti-people”, Chief Minister Mamata Banerjee on Friday wrote to Union Finance Minister Nirmala Sitharaman, urging her to roll it back. “Our demand to the Government of India is to roll back GST from life insurance and medical insurance premium on grounds of people’s health imperatives.
This GST is bad as it adversely affects the people’s ability to take care of their basic vital needs,” Banerjee wrote on X. She added that her party, the ruling TMC, would “hit the road” in protest if the “anti-people GST” is not repealed from insurance costs.
In her letter, Banerjee mentioned that “the primary objective of life and health insurance is to provide financial security and support during unexpected times such as illness, accidents, and untimely deaths. These policies play a crucial role in ensuring that individuals, their families are able to cope with financial hardships during such challenging times.”
“With deep anguish, I am writing to you regarding the imposition of 18 per cent GST on life insurance and health insurance policies/products and the withdrawal of deductions in the new tax regime under sections 80C and 80D of the Income Tax Act, which, to me, are highly anti-people in nature,” the letter read.
Mamata Banerjee, in her letter further stated, “However, the imposition of GST on insurance premium increases the financial burden on the common people. This additional burden may be acting as a deterrent for many individuals from taking new policies or continuing their existing insurance coverage, thereby leaving! them vulnerable to unforeseen financial distress. Moreover, insurance serves as a vital component of the social safety net, reducing the government’s burden in providing direct financial assistance to citizens during such emergency.”
Incidentally, four days ago, the Union Minister of Road, Transport and Highways Nitin Gadkari had raised the demand for withdrawing 18 per cent GST on life and medical insurance premiums. In his letter to Sitharaman on July 28, he said that levying GST on life insurance premiums amounts to levying tax on the uncertainties of life. “You are requested to consider the suggestion of withdrawal of GST on life and medical insurance premium on priority as it becomes cumbersome for the senior citizens,” Gadkari’s letter read.
Currently, 18 per cent GST is charged on life and medical insurance premiums. According to Gadkari, “the 18 percent GST on medical insurance premium is proving to be a deterrent for the growth of this segment of business which is socially necessary.”
Earlier, Mamata had sharply criticised the Union budget saying “it is an anti-poor budget.”