TMC Leader Urges GST Reduction on Health Insurance

Senior TMC leader Derek O'Brien has called on the government to lower the 18% GST on health insurance policies, citing the heavy burden on the middle class. During a Rajya Sabha session, he referenced similar demands from senior BJP leader Nitin Gadkari and highlighted disparities in India’s insurance sector.

Senior TMC leader Derek O'Brien on Monday urged the government to reduce the 18% GST on health insurance policies, arguing that the high tax rate is placing a heavy burden on the middle class.

Speaking during Zero Hour in Rajya Sabha, O'Brien referenced a letter from senior BJP leader and Union Minister Nitin Gadkari making a similar demand to the finance minister.

'The demand is straightforward: reduce the 18% GST on medical and health insurance. It is burdening people, especially the middle class,' O'Brien stated. He pointed out that insurance penetration in India is only 4% compared to more than 7% globally and highlighted an imbalance where 75% are life insurance policies and 25% are medical insurance.

The West Bengal chief minister and several opposition MPs have also written to the finance minister on this matter, O'Brien added.

'They won't listen to us, but they should at least listen to Union Road Transport and Highways Minister Gadkari,' he said, dismissing the government's argument that only the GST Council can change the tax rate. 'This is a flawed argument,' he stated, noting the NDA's majority in the council. 'This is a middle-class issue, not a political one.'

Additionally, Congress member Renuka Chowdhury raised concerns about banks not issuing credit cards to senior citizens.

(With inputs from agencies.)