TMC leader Derek O’Brien has called on Finance Minister Nirmala Sitharaman to "urgently review" and revoke the 18 per cent GST on health and life insurance premiums at the upcoming GST Council meeting. In a letter dated August 24, Derek O’Brien urged the withdrawal of the GST on health and life insurance premiums during the 54th meeting of the GST Council.
“The 18 per cent Goods and Services Tax (GST) on health and life insurance premiums is a burden on 45 crore Indians comprising the middle-class,” said O’Brien, the Trinamool Congress’ (TMC) leader in the Rajya Sabha.
Derek O’Brien said that health and life insurance schemes offer essential financial protection during times of distress, such as illness, accidents, or untimely death, and stressed that it is a collective responsibility to ensure that these critical social safety nets remain affordable for all sections of society. He also expressed concern that the high GST rate on these insurance premiums might discourage citizens from opting for insurance or cause existing policyholders to forgo renewing their policies.
“The public at large, and especially the middle-class, has been severely impacted by this,” he said. He pointed out that while the issue was raised by the TMC and several other opposition parties in Parliament, West Bengal Chief Minister Mamata Banerjee wrote to the finance minister earlier this month and requested that the GST on insurance premiums be rolled back.
Also Read| Badlapur Sexual Assault Case: Committee Report Blames School Administration and Local Police.
Derek O’Brien also referenced a letter from Union Road Transport and Highways Minister Nitin Gadkari, which highlighted concerns raised by the Nagpur Division Life Insurance Corporation Employees’ Union. The union had submitted a memorandum outlining issues within the industry. O’Brien further noted that “350 MPs from 20 political parties protested against this in Parliament on August 6.”
The committee, in its report, recommended reducing GST rates on health insurance products, especially retail policies for senior citizens, microinsurance policies within the limits prescribed under the Pradhan Mantri Jan Arogya Yojana, and term policies to make insurance more affordable.