Kolkata, Aug 2, 2024
West Bengal Chief Minister Mamata Banerjee on Friday wrote to Union Finance Minister Nirmala Sitharaman seeking the withdrawal of 18 per cent GST on life insurance and health insurance policies and products.
In the communique, the Chief Minister also objected to the withdrawal of deductions in the new tax regime under Sections 80C and 80D of the Income Tax Act.
“The primary objective of life and health insurance is to provide financial security and support during unexpected times such as illness, accidents, and deaths. These policies play a crucial role in ensuring that individuals and their families are able to cope with the financial hardships during such challenging times,” she said in the letter.
According to Banerjee, imposition of GST on insurance premiums will increase the financial burden on the people and will hence act as a deterrent for many people in taking new policies or continuing with the existing ones.
The Chief Minister also pointed out that imposing GST on health and life insurance will put the common people under greater stress, depriving them of the benefits of social security net.
“In light of the above considerations, I request you to kindly review the anti-people taxation policies and withdraw the GST on life insurance and health insurance premiums, and include deduction under Sections 80C and 80D of the Income Tax on such premiums in the new regime.
“This will facilitate wider insurance coverage for the common people with more mental and financial stability,” she said.(Agency)
