TMC Urges Withdrawal of 18% GST on Insurance

TMC leader Derek O'Brien has called on Finance Minister Nirmala Sitharaman to urgently reconsider the 18% GST on health and life insurance premiums, arguing that it disproportionately burdens around 45 crore middle-class Indians. In a letter dated August 24, O'Brien emphasized the importance of these insurance schemes for financial security during crises like illness or accidents, warning that the high tax could deter people from obtaining or renewing policies. He noted that the issue has garnered support from 350 MPs across 20 parties, indicating broad political concern. O'Brien also referenced the backing of Union Minister Nitin Gadkari and the Insurance Regulatory and Development Authority of India's target for 'Insurance for All' by 2047, which he believes cannot be met with such high taxation. The demand for withdrawal of the GST will be discussed in the upcoming GST Council meeting.