'Anti-people tax': TMC ups the ante over 18% GST on life and medical insurance premiums

New Delhi: Trinamool Congress (TMC) is upping the ante over the 18 per cent GST on life and health insurance premium with West Bengal Chief Minister Mamata Banerjee urging Finance Minister Nirmala Sitharaman to review the "anti-people" tax and its floor leader Sudip Bandyopadhyay raising the issue in Lok Sabha.

While Trinamool and DMK MPs walked out of Lok Sabha accusing the government of not providing a clarification, Mamata also criticised the withdrawal of incentives that were available under the Income Tax in the old tax regime and requested her include deduction under Income Tax Act on such premium in the new tax regime also.

Mamata's letter comes close on the heels of Union Road Transport Minister Nitin Gadkari writing to Nirmala on July 28 raising the same demand while forwarding a memorandum by Nagpur Divisional Life Insurance Corporation Employees Union.

Sources said Trinamool is all set to raise the decibel levels in Parliament with its floor leader Derek O'Brien planning to raise the issue in Rajya Sabha on Monday. Already, its MP Saket Gokhale had raised a similar issue on July 29.

In her letter, Mamata said the "highly anti-people" imposition of GST on insurance premium increases the financial burden on common people and this is acting as a deterrent on many individuals from taking new policies or continuing their existing insurance coverage, leaving them vulnerable to unforeseen financial distress. 

She said such insurance serves as a vital component of the social safety net, reducing the government's burden in providing direct financial assistance to citizens during such emergencies.

"It is quite obvious that imposing a burden of GST on health and life insurance will put the common people under greater stress and anxiety, and deprive them of the benefit of social security net. We must, at all cost, avoid it," she said.

In Lok Sabha, Bandyopadhyay also urged the government to withdraw the 18% GST on life and health insurance premiums. "This GST is anti-people, it is adversely affecting the people of India. This proposal should be rolled back," he said. Trinamool and DMK MPs walked out of the House, alleging that there was no clarification from the government over the issue.