Kolkata | Calling the Centre's decision to impose 18 per cent GST on life insurance and health insurance policies as anti-people, West Bengal Chief Minister Mamata Banerjee on Friday wrote to Union Finance Minister Nirmala Sitharaman urging her to roll it back.
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, she said in the letter.
Banerjee shot the letter to the Union FM, a day after she said that the party would begin an agitation if the Centre does not withdraw the decision to impose GST on health and life insurance premiums.
"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," the letter read.
The imposition of GST on insurance premiums increases the financial burden on the common people, she 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.
The withdrawal of incentives that were available under the Income Tax Act in the old tax regime is also adding to the woes of the common people, Banerjee said.
She requested Sitharaman to review the "anti-people taxation policies" and withdraw GST on life insurance and health insurance premiums, said Banerjee, also the Trinamool Congress supremo.
Withdrawal of GST on life insurance and health insurance premiums and including deduction under sections 80C and 80D of the Income Tax Act on such premiums in the new tax regime will facilitate wider insurance coverage, Banerjee said.
"I believe you will take this request with utter seriousness.... I look forward to a positive response," she said.
Incidentally, Union Road Transport and Highways Minister Nitin Gadkari raised the demand for withdrawing 18 per cent of GST on life and medical insurance premiums.
In his letter to Sitharaman on July 28, Gadkari said that levying GST on life insurance premiums amounts to levying tax on the uncertainties of life.
His demand was backed by Congress MP Karti Chidambaram, Samajwadi Party MP Rajeev Kumar Rai, and RJD MP AD Singh, among others.
The GST Council, responsible for making decisions on the tax, is scheduled to meet in August. The last meeting took place on June 22.
