Calling the Centre’s decision to impose 18 per cent GST on life insurance and health insurance policies as anti-people, West Bengal Chief Minister Mamata Banerjee on Friday wrote to Union Finance Minister Nirmala Sitharaman urging her to roll it back.

The primary objective of life and health insurance is to provide financial security and support during unexpected times such as illness, accidents, and untimely deaths, she said in the letter.

“With deep anguish, I am writing to you regarding the imposition of 18 per cent GST on life insurance and health insurance policies/products and the withdrawal of deductions in the new tax regime under sections 80C and 80D of the Income Tax Act, which, to me, are highly anti-people in nature,” the letter read.

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Review “Anti-People” Taxation Policies

The imposition of GST on insurance premiums increases the financial burden on the common people, said Banerjee, also the Trinamool Congress supremo.

“This additional burden may be acting as (a) deterrent for many individuals from taking new policies or continuing their existing insurance coverage, thereby leaving them vulnerable to unforeseen financial distress,” she added.

She requested Sitharaman to review the “anti-people taxation policies” and withdraw GST on life insurance and health insurance premiums.

She had on Thursday said that the party would begin an agitation if the central government does not withdraw the decision to impose GST on health and life insurances.

TMC leader Sudip Bandyopadhyay also urged the government to withdraw the 18 per cent GST on life and medical insurance premiums. Soon after the Question Hour in the Lok Sabha, Bandyopadhyay raised the issue, saying taxing insurance premium is “anti-people”.

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TMC, DMK MPs Stage Walk Out

His demand comes amid several opposition leaders supporting senior BJP leader and Union Road Transport Minister Nitin Gadkari request to Nirmala Sitharaman to withdraw GST on the premiums.

The government must withdraw it, the Kolkata Uttar MP said and the demand was backed members of the opposition INDIA bloc parties in the Lower House of Parliament.

“The 18 per cent GST charged over life insurance premiums and medical insurance should be withdrawn. This GST is anti-people, it is adversely affecting the people of India,” Bandyopadhyay said.

“This proposal should be rolled back,” he said.

MPs from INDIA bloc parties TMC and DMK walked out of the House, alleging that there was no clarification from the government over the issue.