Mamata Banerjee on Friday wrote to finance minister Nirmala Sitharaman seeking a waiver of the 18 per cent GST on premiums for life and health insurance policies and products that she termed “anti-people”.

A day after protesting and threatening to launch an agitation in a statement on X, Mamata wrote to the Sitharaman with her demand.

“With deep anguish, I am writing to you…. I request you to kindly review the anti-people taxation policies and withdraw the GST on life insurance and health insurance premiums and include deduction under sections 80C and 80D of the Income Tax Act on such premium in the new tax regime,” Mamata wrote in
the letter.

“… it is quite obvious that imposing burden of GST in health and life insurance will put the common people under greater stress and anxiety, and deprive them of the benefit of social security net,” she added. “We must, at all cost, avoid it.”

Earlier this week, Union surface transport minister Nitin Gadkari had written to Sitharaman asking her to withdraw the GST on life and medical insurance premiums.

As of now, premiums on life insurance products range between 1.8 per cent and 18 per cent and for general insurance products (health or vehicular), it is 18 per cent.

In her letter, the Trinamool Congress chief said life and health insurance must be available to everyone in society and asserted that the imposition of GST on insurance premiums enhanced the burden on the common people.

She pointed out that the additional burden might act as a deterrent for many from buying new policies or continuing their existing ones, thereby leaving them vulnerable to unforeseen financial distress.

“Moreover, insurance serves as a vital component of the social safety net, reducing the government’s burden in providing direct financial assistance to citizens during such emergency,” wrote Mamata, adding that a waiver (besides the measure pertaining to Sections 80C and 80D) will facilitate wider insurance coverage for the common people, with more mental and financial stability.

“I believe you will take this request with utter seriousness and take necessary steps to provide relief to encourage more and more common people to avail of these critical services so close to their basic livelihood issues,” read the letter.

Changes or withdrawal of GST are recommended by the GST Council, following which the Centre and state governments issue notifications.

On Thursday, Mamata had posted on X a statement with the demand.

“This GST is bad because it adversely affects the people’s ability to take care of
their basic vital needs,” she had written.

“If Government of India does not roll back the anti-people GST, we will be bound to hit the road,” she had added in the post.

On Friday, Trinamool’s leader in the Lok Sabha Sudip Bandyopadhyay raised the issue in Parliament and the demand was endorsed by INDIA members.

Following this, Trinamool and DMK members staged a walkout alleging the absence of clarification from the Centre on the matter.

On Monday, Trinamool’s leader in the Rajya Sabha Derek O’Brien is likely to raise the issue in the Upper House.