West Bengal Chief Minister Mamata Banerjee has written to Finance Minister Nirmala Sitharaman requesting withdrawal of GST on life and health insurance premiums, and tweaking the new tax regime so that taxpayers can claim deductions on such premiums.
Banerjee’s letter comes days after a similar request was made by the road, transport & highways minister Nitin Gadkari.
At present, premium on life insurance products ranges between 1.8-18%, and on health insurance products, it is 18%.
Banerjee said that the primary objective of life and health insurance is to provide financial security and support during unexpected times. “However, the imposition of GST on insurance premiums increases the financial burden on common people,” she said.
We all know that “health is wealth”, and thus, I believe you (FM) will take this request with utter seriousness and take necessary steps to provide relief to encourage more common people to avail these critical services, said Banerjee.
The GST Council is the body, which is mandated by law to recommend changes to the current tax rate on goods and services. The next council meeting is likely to take place this month, during which this issue may be taken up for discussion.