Derek writes to FM for rollback of 18% GST on life, health cover
Times of India | 26 August 2024
Kolkata: Trinamool’s Rajya Sabha MP Derek O’Brien wrote to Union finance minister Nirmala Sitharaman on Sunday, urging her to revoke 18% GST on health and life insurance premiums.
“The taxation on health and life insurance premiums is a burden on 45 crore Indians comprising the middle class. These insurance schemes provide financial security during times of distress, may it be an illness, accident or untimely death… Levying a high GST rate on health and life insurance premiums may lead to many citizens not opting for insurance schemes or even existing policy-holders not renewing their policies.The public at large and especially the middle class has been severely impacted by this,” he wrote.
Stressing that Trinamool had first brought up this issue in Parliament on July 29, following which it was raised in both Houses by 20 opposition parties, O’Brien said chief minister Mamata Banerjee had also written to the finance minister on Aug 2 requesting a rollback.
At least 350 MPs from 20 parties protested in Parliament on Aug 6, emphasising how reduction in GST rates was endorsed by the Standing Committee on Finance in its 66th report, submitted in Feb 2024.
“The Insurance Regulatory and Development Authority of India has set the target of ‘insurance for all’ by 2047. The only way to achieve this is by repealing the exorbitant 18% GST on health and life insurance premiums. The Union govt has one-third weightage of votes in the GST Council. To pass any resolution, three-fourth, ie 75% of votes are needed. Moreover, the NDA is in govt in 22 states. So practically, if the Union rejects any proposal, it is essentially dead. What is holding the ruling dispensation back from implementing this through the GST Council?” the Trinamool MP wrote in the letter.