After surface transport minister Nitina Gadkari raised the issue of GST on insurance products, opposition leaders also joined their voices, pushing the Narendra Modi government into embarrassment.
It was first West Bengal chief minister Mamata Banerjee pressed the demand for removal of GST on such financial products, after Gadkari wrote a letter to the Union Finance Minister Nirmala Sitharaman.
In a letter to Finance Minister Nirmala Sitharaman, Banerjee said: “I request you to kindly review the anti-people taxation policies and withdraw the GST on life insurance and health insurance premiums and include deduction under sections 80C and 80D of the Income Tax Act on such premium in the new tax regime.”
Meanwhile, INDIA bloc parties protested in Parliament premises on Tuesday demanding the Centre to roll back the Goods and Services Tax imposed on health and life insurance premiums. The union government has imposed an 18 per cent GST on insurance premiums.
MPs from opposition parties including Congress, Trinamool Congress, Aam Aadmi Party and NCP-Sharad Pawar faction protested on Parliament steps with placards and demanded the government to reverse the GST. The opposition MPs called it “tax terrorism” and raised slogans against the Centre.
Congress MP Sashi Tharoor said it was unfair to impose 18 pc GST on something very essential as life insurance. “Government has announced a policy of life insurance and health insurance for all by 2047 and now they are taxing in such a way that there is no possibility to ever do that.”
Jharkhand Mukta Morcha MP Mahua Maji said the 18 pc GST was unjust and the middle class will be severely affected by the decision. She demanded that GST on the health sector should be reduced.
Samajwadi Party MP Rajeev Kumar Rai, while backing the demand, said Gadkari, despite being a senior minister in the government, had to write to the finance minister over the issue, which is an indication of the “autocratic” attitude of the government.
RJD MP A D Singh backed the demand, and said, “GST on health insurance should be abolished. Gadkari ji has given the suggestion he found appropriate. The finance minister should see how much it will benefit the people and make a decision.” Supporting the demand, Shiv Sena (UBT) MP Anil Desai said he had also raised the issue in his speech during the budget debate.
