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regular-article-logo Saturday, 28 September 2024

Two Andhra Pradesh BJP allies join chorus for rollback of GST on medical insurance premiums

Issue gained prominence ever since Nitin Gadkari, wrote to Sitharaman requesting withdrawal of 18 per cent GST on health and insurance policies

Anita Joshua New Delhi Published 08.08.24, 06:09 AM
Representational image

Representational image File picture

Two BJP allies from Andhra Pradesh have over the past two days joined the chorus for a rollback of GST on medical insurance premiums.

The issue gained prominence ever since Nitin Gadkari, the Union minister of road transport and highways, wrote to finance minister Nirmala Sitharaman requesting the withdrawal of 18 per cent GST on health and insurance policies.

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In his July 28 letter, Gadkari had said “levying GST on life insurance premium amounts to levying tax on the uncertainties of life”.

The Opposition was quick to seize the opportunity and step up the demand.

On Tuesday and Wednesday, the Lok Sabha saw MPs from the Telugu Desam Party and the Jana Sena — both BJP allies — raise the same demand.

TDP MP Lavu Srikrishna Devarayalu on Tuesday urged the government to reduce the GST on medical insurance premiums while intervening in the discussion on the Finance Bill in the Lok Sabha.

“There is 18 per cent GST on health insurance policies. If you look at the percentage of people having life insurance, 75 per cent of them have life insurance. Only 25 per cent of them have health or medical insurance…. It should be the opposite way. More people should have health insurance or medical insurance and less people should have life insurance or the number should be equal, at least. But somehow it is skewed in one direction. It can be addressed only if GST can be reduced so that more people can have access to medical insurance and health insurance.”

On Wednesday, Balashowry Vallabhaneni of the Jana Sena Party cited Gadkari’s letter to urge Sitharaman to waive the 18 per cent GST on medical insurance and life insurance premiums. He also requested the withdrawal of GST on MPLADS, pointing out that almost a crore of the 5 crore given to MPs annually for development work in their constituencies is taken away by this tax.

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