‘This GST is bad…’: Mamata Banerjee on why Centre should roll-back GST on insurance premiums

West Bengal Chief Minister Mamata Banerjee on Thursday, August 1, urged the Central government to roll-back Goods and Services Tax (GST) from life insurance and medical insurance premiums. Mamata Banerjee said GST on insurance premiums affects people’s ability to take care of their basic needs.

In a post on X, Mamata Banerjee said, “Our demand to Government of India is to roll back GST from life insurance and medical insurance premium on grounds of people’s health imperatives. This GST is bad because it adversely affects the people’s ability to take care of their basic vital needs.”

The West Bengal chief minister also threatened to protest if the government does not withdraw the “anti-people” GST. “If Government of India does not roll back the anti-people GST, we will be bound to hit the road,” CM Mamata Banerjee said.

Earlier, Union Minister Nitin Gadkari, in his letter to Finance Minister Nirmala Sitharaman, raised concerns of the Nagpur Division Life Insurance Corporation Employees Union, which had submitted to him a memorandum regarding the issues of the insurance industry. Nitin Gadkari’s move was lauded by the Opposition parties.

Referring to it, Nitin Gadkari said, “Levying GST on life insurance premiums amounts to levying tax on the uncertainties of life. The Union feels that the person who covers the risk of life’s uncertainties to give protection to the family should not be levied tax on the premiums to purchase cover against this risk.”

Lauding the move, Congress MP Karti Chidambaram said, “I am very happy that Cabinet Minister Mr Gadkari has endorsed my demand that I made yesterday on the floor of the House to remove the 18 per cent GST levied on Health and Life Insurance premium.”

Samajwadi Party MP Rajeev Kumar Rai, while backing the demand, said the minister, 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. “GST on insurance premium should be abolished. This has been our demand since long. We support Nitin Gadkari ji’s demand,” he said.

Shiv Sena (UBT) MP Anil Desai said, “It is a good suggestion. When I spoke on the budget, I had also raised the issue that life insurance and medi-claims are an important requirement for the middle class and especially for the retired people.”

“It is not about comfort or luxury. It is a necessity. Healthcare is anyhow outside the reach of the middle class. Even when Nirmala ji replied, I had asked her about this, but she did not comment on it. I am hoping she will pay attention to the issue,” he said.