CM Mamata writes to Sitharman demanding removal of GST on life insurance premiums

West Bengal Chief Minister Mamata Banerjee has written a letter to Finance Minister Nirmala Sitharaman urging to roll back the GST on life and medical insurance premiums, stating that it adversely affects people's ability to take care of their vital needs. She announced the move yesterday on X.

She said that the primary objective of life and health insurance is to ensure a sense of financial security and support to the people during their unexpected and harsh times such as illness, accidents, and untimely deaths.

"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," she wrote in the letter.

The imposition of GST on insurance premiums increases the financial burden on the common people, the Chief Minister said.

"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, Mamata said.

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.