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.
“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,” she added.
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.