Mamata Banerjee demands rollback of GST on insurance premiums

West Bengal Chief Minister Mamata Banerjee has called on the Central government to withdraw the Goods and Services Tax (GST) imposed on life and medical insurance premiums. In a statement on August 1, 2024, Banerjee criticised the tax as detrimental to people's ability to meet their basic needs, describing it as “anti-people.”

Banerjee took to social media to express her discontent, asserting that the GST negatively impacts the affordability of insurance, which is crucial for health and security. She warned of protests if the government fails to address her demands, stating, “If the Government of India does not roll back the anti-people GST, we will be bound to hit the road.”

This appeal follows recent comments from Union Minister Nitin Gadkari, who supported concerns raised by the Nagpur Division Life Insurance Corporation Employees Union about the adverse effects of GST on insurance premiums. Gadkari, echoing the sentiments of Congress MP Karti Chidambaram, argued that taxing insurance premiums is akin to taxing life’s uncertainties and should be reconsidered.

Additional support for the demand has come from Samajwadi Party MP Rajeev Kumar Rai and Shiv Sena (UBT) MP Anil Desai, both of whom emphasised the essential nature of insurance for the middle class and retirees. Desai, in particular, criticised Finance Minister Nirmala Sitharaman for her lack of response on the issue, hoping for further attention to the matter.