Kolkata: The Trinamool Congress has claimed moral victory after the Union government exempted Goods and Services Tax (GST) from individual health and life insurance policies.
Taking to its official X account on Wednesday evening, the Trinamool Congress said it was West Bengal Chief Minister Mamata Banerjee, who had raised objections to the government’s decision to put GST on life insurance policies and demanded its waiver.
“A victory for common people. A victory wrested from a tone-deaf regime that only listens when forced. From day one, @MamataOfficial warned the Finance Minister that taxing insurance premiums was cruel, anti-people, and would deter families from securing their future, leaving them vulnerable to financial ruin in times of crisis,” the Trinamool Congress said.
The party also shared a copy of a letter which Chief Minister Banerjee had written to Union Finance Minister Nirmala Sitharaman, urging her to review the GST Council’s decision to impose 18 per cent GST on life insurance policies.
The letter was dated August 2, 2024.
Following a GST Council meeting on Wednesday, the Centre scrapped the GST on individual health and life insurance policies.
The move, effective from September 22, eliminates the 18 per cent levy that was previously applied, providing a relief to families and the healthcare sector.
After the Centre’s decision, the Trinamool Congress claimed that the BJP-led Central government has buckled under pressure.
“The @narendramodi Govt. has finally buckled under pressure. This rollback proves that @BJP4India only acts when cornered. We will continue to fight every such Jono-Birodhi decision, in Parliament, on the streets, among the people,” the Trinamool Congress said.
The GST Council, chaired by Finance Minister Sitharaman, on Wednesday, rationalised the indirect tax structure, cutting the current four slabs down to two — scrapping the 12 per cent and 28 per cent rates, while retaining the 5 per cent and 18 per cent slabs.
The changes in GST rates on services will be implemented from September 22.
The GST Council has reduced the tax rate on personal care items such as hair oil, shampoo, toothpaste, and dental floss from 18 per cent to 5 per cent.
It has increased the tax on cigars, cheroots, cigarillos, cigarettes, and other tobacco products, including substitutes, from 28 per cent to 40 per cent.
(IANS)
