INDIA Bloc Protests Against GST on Health, Life Insurance Premiums

The protest marks the first joint opposition action against GST rates on a specific service, underscoring the critical role of insurance for the middle and lower-middle classes.

Members of the INDIA bloc, led by Lok Sabha opposition leader Rahul Gandhi, gathered in the Parliament complex on Tuesday to protest the imposition of an 18% GST on health and life insurance premiums.

Carrying placards reading "Tax Terrorism," the MPs accused the Center of placing an undue financial burden on policyholders.

Rahul Gandhi (Congress), Sharad Pawar (NCP-SCP), TR Balu (DMK), Sudip Bandyopadhyay (Trinamool Congress), Sanjay Raut (SS-UBT), Ramgopal Yadav (SP), Misa Bharati (RJD), and other MPs participated in the demonstration.

In a post in Hindi on X, Rahul Gandhi said, "Looking for a 'tax opportunity' in 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.’’

Oppositions’ Protests

Congress MP Pramod Tiwari criticized the tax, questioning the morality of taxing individuals dealing with health issues or accidents.

"How can you tax a person who is unwell or has met with an accident? This is absolutely wrong," he said.

Opposition MPs, including Congress's Sashi Tharoor and Jharkhand Mukta Morcha's Mahua Maji, argued that the 18% GST is unjust and disproportionately affects the middle class.

Tharoor labeled the tax as unfair, emphasizing its contradiction with the government's goal of universal life and health insurance by 2047. Maji highlighted the severe impact on the middle class, demanding a reduction in GST for the health sector.

Trinamool Congress’s Rajya Sabha leader Derek O’Brien stressed the longstanding burden of the high tax, noting its unnoticed implementation since July 2017.

“The government must reduce 18% GST on medical and health insurances. This has been there since July 2017 and has gone unnoticed. It should be reduced because it is burning the middle class. The high tax of 18% is a burden for the middle class,” Trinamool leader added.

While West Bengal CM Mamata Banerjee and Union Minister Nitin Gadkari have both urged Finance Minister Nirmala Sitharaman to reconsider the tax. Gadkari described the GST as a tax on life's uncertainties and a restriction on industry growth.

Last month, Gadkari wrote to Sitharaman saying, “You are requested to consider the suggestion of withdrawal of GST on life and medical insurance premium on priority as it becomes cumbersome for the senior citizens.”

The protest marks the first joint opposition action against GST rates on a specific service, underscoring the critical role of insurance for the middle and lower-middle classes.

Lok Sabha Speaker Om Birla later stated that the protest violated an agreement among MPs to avoid demonstrations at the Parliament House entrances.