Opposition Leaders Mount Pressure on Center to Lower 18% GST on Insurance Policies

Pressuring the government to lessen the GST on health insurance policies, the opposition would protest in parliament. Trinamool Congress leader Derek O’Brien raised the issue.

During the Zero Hour in Rajya Sabha, Mr O’Brien mentioned a letter sent by Union Minister and senior BJP leader Nitin Gadkari to Finance Minister Nirmala Sitharaman, in which he made a similar request.

The demand is to lessen the 18% GST on medical and health insurance. We must lessen the same as it is a problem loading people, particularly the middle class, Mr O’Brien.

It was pointed out by Trinamool leader that insurance penetration in India is low at 4% compared to more than 7% all across the world. Also, he mentioned that there is an imbalance in the insurance sector, with 75% of policies being life insurance policies and 25% being medical insurance policies.

Read Also: GST Impact on Healthcare Industry in India

The opposition, prompted by Mr Gadkari’s letter, has raised this issue. West Bengal Chief Minister Mamata Banerjee also wrote to Ms Sitharaman. Several opposition leaders raised it in Parliament in the recent budget discussions.

Mr O’Brien said, “They won’t listen to us,” and added that the Finance Minister must at least listen to Mr Gadkari. He also denied the argument that the GST Council alone can bring change.

He mentioned that it is a flawed argument, citing that the NDA has a majority in the council. We do not permit the FM to hinder behind the curtain of the GST council. Mr O’Brien mentioned that it is a middle-class and not a political problem.