INDIA bloc parties protest against GST on health, life insurance premiums

They criticise the government for imposing extra burden on the middle class, calling it a step towards ‘tax terrorism’

Updated - August 08, 2024 11:08 pm IST - New Delhi

INDIA bloc Protest at Makar Dwar, New Parliament (GSR on Health and Life Insurance), Parliament House, New Delhi.

INDIA bloc Protest at Makar Dwar, New Parliament (GSR on Health and Life Insurance), Parliament House, New Delhi.

Demanding the rollback of the 18% Goods and Services Tax (GST) imposed on life and health insurance premiums, the INDIA bloc parties held protests on the steps leading to the Makar Dwar of Parliament on Tuesday (August 6, 2024).

Carrying placards in seven languages, the parties criticised the government for imposing extra burden on the middle class and called it a step towards “tax terrorism”.

Later in a post on X, Leader of the Opposition Rahul Gandhi said, “The Modi government even collected ₹24,000 crore from millions of common Indians who pay health insurance premiums every year by saving every penny to ensure that they do not have to bow down to anyone in case of a ‘health crisis’ in life.”

Parliament Budget session updates: August 6, 2024

“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,” Mr. Gandhi said.

Senior Congress leader Shashi Tharoor said the protest by the INDIA bloc parties was absolutely justified. “You can’t impose GST on something as essential as health insurance. India is already the country whose citizens pay the highest out-of-pocket expenses for health crises in the world,” Mr. Tharoor said. 

The issue has resonated within both Houses of Parliament in the past few days. On Monday, Trinamool Congress’s Rajya Sabha leader, Derek O’ Brien, had raised the issue in the House during Zero Hour.

West Bengal Chief Minister Mamata Banerjee recently wrote to Finance Minister Nirmala Sitharaman on the issue.

The Opposition parties stepped up their protests especially after Union Minister Nitin Gadkari also wrote to Ms. Sitharaman, urging her to consider withdrawing the GST on insurance premiums which, he said, amounted to taxing uncertainties of life and restricting the industry’s growth.

Hours after the protest, Lok Sabha Speaker Om Birla cautioned the members to desist from holding protests on the steps leading to Parliament. There was consensus, he said, that the entrance to Parliament would not be blocked, urging all members to follow the consensus.   

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