West Bengal Chief Minister Mamata Banerjee has urged the BJP-led central government to withdraw GST on life and medical insurance premiums, saying that it adversely affects people’s ability to take care of their vital needs. The Trinamool Congress chief is the latest to criticise the move announced by Finance Minister Nirmala Sitharaman in the Budget.
In a letter to the Finance Minister, Ms Banerjee requested the Centre to review the policy as it is “highly anti-people in nature”.
“The primary objective of life and health insurance is to provide financial security during unexpected times. These policies play a crucial role in ensuring that individuals and their families are able to cope with hardships during such challenging times. However, the imposition of GST on insurance premium increases the financial burden on common man,” Ms Banerjee said.
“This additional burden may be acting as deterrent for many individuals from taking new policies or continuing their existing insurance coverage, leaving them vulnerable to unforeseen financial distress,” she added.
The GST council, responsible for making decisions on the tax, is scheduled to meet in August. The last meeting took place on June 22.
The move to levy 18 per cent tax on insurance policies and premiums has been criticised by several Opposition leaders. Even Union Minister Nitin Gadkari has raised the demand to withdraw the tax.
The remarks come amid criticism from several quarters over the first Budget of the third Narendra Modi government, presented last week. While the Opposition has accused the Centre of being generous only to states ruled by its key allies TDP and JDU, a section of social media users have pointed to high tax rates for the salaried class.
The Finance Minister has trashed the Opposition’s charge, saying the Centre has provided funds to all states. She has said that if the name of a state is not mentioned in the Budget speech, it does not mean it is not covered. The BJP has said policy priorities of the Budget suggest that it has a long-term goal of ‘Viksit Bharat’ — making India a developed nation — by 2047.
