"Can't impose GST on something as essential as life insurance," says Congress MP Shashi Tharoor
Aug 06, 2024
New Delhi [India], August 6 : Reacting to 18% GST implemented on life insurance and medical insurance premiums, Congress MP Shashi Tharoor on Tuesday said that something as essential as life insurance cannot be imposed with GST. He further emphasised that our country already has the highest outer pocket expenses in health and now imposing 18 per cent GST is unfair.
"You can't impose GST on something as essential as life insurance. Govt has announced a policy of life insurance and health insurance for all by 2047 and now they are taxing in such a way that there is no possibility to ever do that. We already have the highest outer pocket expenses in health and now you also want 18% GST is not fair to people...Kerala also needs an AIIMS, which has been promised since 2014 and that was what that extra protest was about," said the Congress MP.
Meanwhile, Congress MP Pramod Tiwari stated that looting a struggling person like this is wrong.
"If a person is unwell or has met with an accident, he is struggling and you are taxing such a person. Looting a struggling person like this is wrong...Gadkari himself wrote regarding this and demanded rollback...we are raising this issue in the interest of people..." he said.
Notably, the INDIA alliance leaders held a protest against the Central government outside the Makar Dwar in the Parliament on Tuesday, demanding to roll back GST on health and life insurance. Leader of Opposition in Lok Sabha Rahul Gandhi also joined the protest.
Earlier on Friday, West Bengal Chief Minister Mamata Banerjee requested the central government to withdraw the Goods and Services Tax (GST) on life insurance and health insurance premiums, terming the taxation on such items as "anti-people."
In a letter addressed to Union Finance Minister Nirmala Sitharaman dated August 2, she wrote that the imposition of GST on such essential items increases the financial burden on common people.
The West Bengal CM further stated that the additional burden, in the form of 18 per cent GST, may deter many individuals from taking new policies or continuing their existing insurance coverage, leaving them vulnerable to unforeseen financial distress.
