New Delhi: Opposition MPs of the INDIA alliance staged a protest at parliament premises on Tuesday (August 6) demanding a rollback of 18% GST (Goods and Services Tax) on health and life insurance premiums.
The protest came a day after the Union ministry of finance informed the Lok Sabha in a written reply to a question by Trinamool Congress MP Mala Roy that a total of Rs 24,529.14 crore had been collected in the form of GST collections from health insurance premiums and re-premiums between 2021-22 to 2023-24.
The data showed that GST collections from health insurance premiums rose from Rs 5,354.28 crore in 2021-22 to Rs 7638.33 crore in 2022-23 to Rs 8262.94 crore in 2023-24.
GST collections from health insurance re-premiums also increased during this period from Rs 825.95 crore in 2021-22, to Rs 963.28 crore in 2022-23 to Rs 1,484.36 crore in 2023-24.
Opposition MPs stood with banners and posters at the Makar Dwar in parliament and shouted slogans of “medical insurance GST wapas lo”.
Parties including the Congress, TMC, NCP (Sharad Pawar), Aam Aadmi Party (AAP), DMK, and RJD among others participated in the protest.
In a statement, the TMC said that the National Democratic Alliance (NDA) government was attempting “to fleece the nation by imposing 18% GST on life & health insurance, MPs of the INDIA Alliance are standing firm in parliament.”
“We are determined to block this attempt to squeeze money from hardworking citizens and make essential protections unaffordable!”
Leader of the opposition in the Lok Sabha Rahul Gandhi said that the attempt to tax every disaster is proof of the “insensitive thinking of the BJP government”.
“INDIA Alliance opposes this opportunistic thinking. Health and life insurance must be made GST free.”
When the House proceedings started, Lok Sabha speaker Om Birla said that it was “not appropriate” for the MPs to protest at Makar Dwar.
“After discussions with all parties, a consensus was reached that protests and demonstrations would not be held on any of the entrances (dwars) in parliament..I request all of you to abide by the decisions that have been taken by you … I had gone there in the morning, this is not appropriate,” he said.
Earlier on Monday, TMC Rajya Sabha MP Derek O’Brien raised the issue demanding a rollback during a discussion on special matters raised with the permission of the chair.
“Reduce 18% GST on medical health insurance. This has been there since (errata) 2017. This is burning people, mainly the middle class. The high tax rate is a burden at 18%. Insurance penetration is low in India. Internationally is more than 7%, India it is under 4%. Imbalance in the insurance sector, 75% is life insurance and 25% is health insurance,” he said.
On August 2, West Bengal chief minister Mamata Banerjee wrote to the finance minister Nirmala Sitharaman, calling the move “anti-people” and urging her to withdraw the GST on life and health insurance policies and said that the high premiums would act as a deterrent to many before taking insurance policies.
On July 31, Union minister Nitin Gadkari also wrote to his colleague Sitharaman and urged her to rollback the GST on medical and life insurance premiums.
