In the upcoming GST Council meeting, Trinamool Congress leader Derek O’Brien has requested Finance Minister Nirmala Sitharaman to “urgently review” and abolish the 18% GST on health and life insurance premiums.
In a letter on Saturday, O’Brien demanded that during the 54th GST Council meeting, the GST on life and health insurance premiums be lifted.
“The 18 per cent Goods and Services Tax on health and life insurance premiums is a burden on 45-crore Indians comprising the middle class,” he said.
“These insurance schemes provide financial security during times of distress, may it be an illness, accident, or untimely death. It is our collective responsibility to ensure that all sections of society are able to afford this crucial social safety net. The public at large, and especially the middle class, has been severely impacted by this,” he added.
The steep GST rate on health and life insurance, according to O’Brien, can deter many citizens from enrolling in insurance schemes or even cause current policyholders to decide not to renew their policies.
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