Kolkata (West Bengal) [India], August 2 : West Bengal Chief Minister Mamata Banerjee has requested the central government to withdraw the Goods and Services Tax (GST) on life insurance and health insurance premiums, terming the taxation on such items as "anti-people."
In a letter addressed to Union Finance Minister Nirmala Sitharaman dated August 2, she wrote that the imposition of GST on such essential items increases the financial burden on common people.
Both life insurance and medical insurance premiums attract a GST rate of 18 per cent.
The West Bengal CM further stated that the additional burden, in the form of 18 per cent GST, may deter many individuals from taking new policies or continuing their existing insurance coverage, leaving them vulnerable to unforeseen financial distress.
In another request, the Bengal CM urged the central government to make provisions for standard deductions under sections 80C and 80D of the Income Tax Act under the new tax regime.
The standard deduction is available under the old tax regime.
"The primary objective of life and health insurance is to provide financial security and support during unexpected times such as illness, accidents, and untimely deaths. These policies play a crucial role in ensuring that individuals and their families can cope with financial hardships during such challenging times," her letter read.
Moreover, she argued that insurance serves as a vital component of the social safety net, reducing the government's burden in providing direct financial assistance to citizens during health emergencies.
"We all know that health is wealth. Healthcare is a major social security, and it is our commitment to extend to the common people maximum social security in this area to ensure their good health and well-being," the letter further read.
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