West Bengal Chief Minister Mamata Banerjee wrote to Union Finance Minister Nirmala Sitharaman over the Centre’s decision to impose 18 per cent GST on life insurance and health insurance policies terming it as anti-people, and urged her to roll it back. She said that the primary objective of life and health insurance is to ensure a sense of financial security and support to the people during their unexpected and harsh times such as illness, accidents and untimely deaths.
Mamata writes to Sitharaman
"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," she wrote in the letter.
The imposition of GST on insurance premiums increases the financial burden on the common people, the Chief Minister said.
"This additional burden 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," she added.
She requested Sitharaman to review the "anti-people taxation policies" and withdraw GST on life insurance and health insurance premiums, Mamata said.
She had on Thursday said that the party would begin an agitation if the central government does not withdraw the decision to impose GST on health and life insurances.
Gadkari writes to Sitharaman on GST on life, medical insurance premium
Earlier, Union Minister and senior BJP leader Nitin Gadkari wrote to Sitharaman, requesting her to withdraw the GST imposed on premiums for life and medical insurance plans. This request comes at a time when the Finance Minister is facing a lot of criticism over the Union Budget.
"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," Gadkari said.
(With PTI inputs)
ALSO READ | 'Tax on life's uncertainties': Gadkari writes to Sitharaman on GST on life insurance premium
