The Trinamool Congress on Wednesday once again demanded a rollback of the 18 per cent GST on life and health insurance policies, holding the BJP responsible for the additional burden on consumers as the ruling party has the majority in the GST Council which sets these rates.
Raising it as a Zero Hour mention in the Rajya Sabha, Trinamool MP Nadimul Haque said all Opposition parties had been demanding a rollback of the GST on life and health insurance policies for several months.
“Instead of addressing these concerns, what did you do? Shift the blame on the GST Council. The sad reality is that the Union government holds one-third of the votes, while states have two-thirds. Moreover, the NDA is in power in 21 states. Then what’s stopping you? Why don’t you remove the GST? Now, you’ll say it is with the group of ministers,” he said.
The group of ministers, Haque said, had initially recommended exempting the premium on health insurance for senior citizens and term life insurance from the GST.
“We ask you again, why do you like to neglect the middle class? You boast of income tax being exempted till ₹12 lakh for the middle class. If you genuinely care, then remove the GST.”
The demand of the Opposition received support within the government too when first raised by Trinamool during the monsoon session of Parliament last year.
While road transport and highways minister Nitin Gadkari wrote to finance minister Nirmala Sitharaman seeking withdrawal of the GST on life and health insurance premiums, two BJP allies from Andhra Pradesh — the TDP and the Jana Sena — joined the chorus in the Lok Sabha last year during the discussion on the finance bill.
In his letter, Gadkari had said: “Levying GST on life insurance premium amounts to levying tax on the uncertainties of life.”