CM writes to Sitharaman, urges to roll back 18% GST on life & health insurance

Kolkata: Chief Minister Mamata Banerjee on Friday wrote to Union Finance Minister Nirmala Sitharaman urging her to roll back the 18 per cent GST imposed on life insurance and health insurance, which according to her, is ‘anti people’ in nature.

“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 and their families are able to cope with financial hardships during such challenging times. The imposition of GST on insurance premiums increases the financial burden on the common people,“ Banerjee’s letter read.

Banerjee further stated that this additional burden of imposition of GST on life insurance and health insurance 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.

Banerjee requested Sitharaman to review the “anti-people taxation policies” and withdraw GST on life insurance and health insurance premiums and include deductions under Sections 80 C and 80 D of the Income Tax Act on such premiums in the new tax regime. “Infact this will facilitate wider insurance coverage for the common people with more mental and financial stability,” her letter read.

Banerjee, who is also the chairperson of Trinamool Congress, wrote on X handle that her party would begin an agitation if the central government does not withdraw the decision to impose GST on health and life insurance.

Interestingly, a difference of opinion among the BJP in connection with the imposition of GST on premiums for life and medical insurance plans in the Budget 2024 has come to the forefront with Union minister and senior BJP leader Nitin Gadkari writing to Sitharaman, requesting her to withdraw the GST imposed on premiums for life and medical insurance plans.

“Main issue raised by the Union is related to withdrawal of GST on Life and Medical Insurance Premium. Both life insurance and medical insurance premiums attract a GST rate of 18 per cent. Levying GST on life insurance premium amounts to levying tax on the uncertainties of life,” the Road Transport and Highways minister had written.