West Bengal Chief Minister Mamata Banerjee on Thursday demanded that the Centre should roll back the goods and services tax (GST) on life and medical insurance premiums. Calling the tax on insurance premiums “bad”, she said that it adversely affects the people’s ability to take care of their basic needs.
“Our demand to 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 because it adversely affects the people’s ability to take care of their basic vital needs,” Banerjee said in a post on X (formerly Twitter).
She further threatened to protest if the government does not withdraw the “anti-people” GST. “If Government of India does not roll back the anti-people GST, we will be bound to hit the road,” the West Bengal CM said. Mamata Banerjee, however, is not the only one who wants the Centre to remove the GST on life and medical insurance premiums.
Union Minister Nitin Gadkari recently request Nirmala Sitharaman to withdraw the 18 per cent GST on life and medical insurance premiums. In his letter to Sitharaman, Gadkari said that levying GST on insurance premiums is akin to “levying tax on the uncertainties of life”.
While raising the concerns of the Nagpur Division Life Insurance Corporation Employees Union, he also said that people shouldn’t be levied tax on life and medical insurance cover to purchase cover against this risk.
“Similarly, the 18% GST on medical insurance premium is proving to be a deterrent for the growth of this segment of business which is socially necessary,” Gadkari wrote in his letter.
Congress MP Karti Chidambaram welcomed Gadkari’s letter to Sitharaman and said that India is a very under-insured country. The Sivaganga MP also said that insurance should be treated not only as a social cover but also as a mode of saving.
“We are a very under-insured country, and we must encourage people to insure themselves. By levying GST you are making the premiums expensive. You must treat insurance not only as a social cover but also as a mode of saving. So they should remove the GST,” Chidambaram said.
Shiv Sena (UBT) MP Anil Desai also backed Gadkari’s demand and said that this is a good suggestion. He also said that life insurance and mediclaims are an important requirement for the middle caste and especially for the retired people.
“It is not about comfort or luxury. It is a necessity. Healthcare is anyhow outside the reach of the middle class. Even when Nirmala ji replied, I had asked her about this, but she did not comment on it. I am hoping she will pay attention to the issue,” Desai said.
The GST council, which makes decisions on the tax, is scheduled to meet in August. Its last meeting took place on June 22.