Calling tax on essential items ‘anti-people,’ West Bengal chief minister Mamata Banerjee urged the central government to remove the goods and services tax (GST) on life insurance and health insurance premiums.
In a letter, addressed to Union finance minister Nirmala Sitharaman, Banerjee emphasized that the tx on essential items increases the financial burden on ordinary citizens.
Currently, both life insurance and medical insurance premiums are subject to a GST rate of 18 per cent. Banerjee expressed concern that this additional 18 per cent GST burden might discourage many people from purchasing new policies or maintaining their existing insurance coverage, potentially exposing them to unexpected financial hardships.
“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.
In a letter, addressed to Union finance minister Nirmala Sitharaman, Banerjee emphasized that the tx on essential items increases the financial burden on ordinary citizens.
Currently, both life insurance and medical insurance premiums are subject to a GST rate of 18 per cent. Banerjee expressed concern that this additional 18 per cent GST burden might discourage many people from purchasing new policies or maintaining their existing insurance coverage, potentially exposing them to unexpected financial hardships.
“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.
Furthermore, Banerjee contended that insurance is an essential element of the social safety net, alleviating the government’s responsibility to provide direct financial support to citizens during health crises. She also requested that the central government include provisions for standard deductions under sections 80C and 80D of the Income Tax Act within the new tax regime, which are currently available under the old tax regime.
“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.