INDIA bloc leaders protest at Parliament gate against GST on insurance services
Opposition leaders pointed out that even Union transport minister Nitin Gadkari had written to finance minister Nirmala Sitharaman to reconsider the 18% tax on insurance services.
INDIA bloc MPs staged a big protest at the gate of the Parliament building on Tuesday demanding reduction in the 18% GST on life and health insurance premiums. The protest, attended by both leaders of the opposition Rahul Gandhi and Mallikarjun Kharge, was staged hours before the discussion started on the Finance Bill.
NCP(SP) faction head Sharad Pawar, who usually doesn’t participate in such demonstrations, joined the protests, giving a fillip to the agitation. Opposition leaders claimed that the GST rate was “quietly” increased to 18% and must be reduced to benefit the middle class.
The Opposition, which has staged joint protests on larger issues, for the first time came together against GST rates on a particular service, given the importance of insurance for middle class and lower middle class.
“The government must reduce 18% GST on medical and health insurances. This has been there since July 2017 and has gone unnoticed. It should be reduced because it is burning the middle class. The high tax of 18% is a burden for the middle class,” Trinamool Congress’ Rajya Sabha leader Derek O’Brien said.
The opposition MPs carried banners and posters in seven other languages apart from English.
Opposition leaders also pointed out that even Union transport minister Nitin Gadkari had written to finance minister Nirmala Sitharaman to reconsider the 18% tax on insurance services.
Last month, Gadkari wrote to Sitharaman saying, “You are requested to consider the suggestion of withdrawal of GST on life and medical insurance premium on priority as it becomes cumbersome for the senior citizens.”
He cited a memorandum of the Nagpur Divisional Life Insurance Corporation Employees Union on the issue.
O’Brien said only 4% of the people have insurance and among them 75% have life insurance.
“Two MPs have raised the demand. Our chief minister has also written a letter on this. At least the FM should listen to the cabinet minister who has written to her. When we write, the FM will say, I can’t do GST Council has to decide. In GST council, NDA to INDIA ratio is 2:1. We must not allow FM to hide behind GST curtain,” he said.