West Bengal Chief Minister Mamata Banerjee supported the demand for withdrawing GST on life and medical insurance premiums, stating that it adversely affects people’s ability to take care of their vital needs.
Union Road Transport and Highways Minister Nitin Gadkari raised the demand for withdrawing 18 per cent Goods and Services Tax (GST) on life and medical insurance premiums, which was backed by several opposition leaders.
“Our demand to the Government of India is to roll back GST from life insurance and medical insurance premiums on grounds of people’s health imperatives. This GST is bad because it adversely affects the people’s ability to take care of their basic vital needs,” Banerjee posted on X on Thursday.
“If the Government of India does not roll back the anti-people GST, we will be bound to hit the road,” she added.
Calling the Centre's decision to impose 18 per cent GST on life insurance and health insurance policies as anti-people, West Bengal Chief Minister Mamata Banerjee on Friday wrote to Union Finance Minister Nirmala Sitharaman urging her to roll it back.
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, she said in the letter.
Banerjee shot the letter to the Union FM, a day after she said that the party would begin an agitation if the Centre does not withdraw the decision to impose GST on health and life insurance premiums.
"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.
She requested Sitharaman to review the "anti-people taxation policies" and withdraw GST on life insurance and health insurance premiums, said Banerjee, also the Trinamool Congress supremo.
Withdrawal of GST on life insurance and health insurance premiums and including deduction under sections 80C and 80D of the Income Tax Act on such premiums in the new tax regime will facilitate wider insurance coverage, Banerjee said.
"I believe you will take this request with utter seriousness.... I look forward to a positive response," she added.
In his letter to Union Finance Minister Nirmala Sitharaman on July 28, Gadkari said that levying GST on life insurance premiums amounts to levying tax on the uncertainties of life.
His demand was backed by Congress MP Karti Chidambaram, Samajwadi Party MP Rajeev Kumar Rai and Rashtriya Janata Dal MP AD Singh, among others.
The GST council, responsible for making decisions on the tax, is scheduled to meet in August. The last meeting took place on June 22.
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