Banerjee’s Battle: Bold Bid to Ban GST on Insurance Premiums

Kolkatta: West Bengal Chief Minister and Trinamool Congress (TMC) chief Mamata Banerjee has called on the central government to eliminate the Goods and Services Tax (GST) on life and health insurance premiums. Speaking on Thursday, August 1, 2024, Banerjee described the current taxation as an “anti-people policy,” emphasizing the negative impact it has on citizens’ ability to meet essential healthcare needs.

“Our demand to the Indian government is to withdraw GST on life and medical insurance premiums based on the health needs of the people,” Banerjee stated. She argued that GST, as currently applied, significantly burdens the common man, potentially making it more difficult for individuals to obtain new insurance policies or maintain existing coverage. The chief minister warned that if the government does not reconsider and roll back the GST, public demonstrations could follow.

The next GST Council meeting is scheduled for August, following the last session held on June 22, 2024. The council will deliberate on various tax matters, including the controversial 18 percent GST on insurance premiums. Notably, Union Transport Minister Nitin Gadkari has also previously appealed to Finance Minister Nirmala Sitharaman to remove this tax, aligning with the concerns voiced by Banerjee.

Adding to the call for action, Trinamool Congress MPs expressed strong opposition to the GST imposition on life insurance premiums and certain medicines in the Lok Sabha on Friday, August 2, 2024. They reiterated the demand for the tax’s rollback, reflecting a broader sentiment within the party against what they see as an unjust financial strain on the populace.

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