TMC leader Derek O’Brien calls on the government to cut GST on health insurance

Senior TMC leader Derek O’Brien on Monday urged the government to reduce the 18 per cent GST on health insurance policies, saying the high tax rate was burdening people, especially the middle class. Raising the issue during Zero Hour in Rajya Sabha, he also referred to a letter written to the Finance Minister by senior BJP leader and Union Minister Nitin Gadkari, which made a similar demand.

“The need is simple. Reduce the 18 per cent GST on health and medical insurance. We should reduce it because it is a problem that burdens people, mainly the middle class. So it should be reduced,” Derek said.

The TMC leader noted that insurance penetration in India is low at 4 per cent, while globally it is over 7 per cent.

He also added that there is an imbalance in the insurance sector, with 75 percent being life insurance and 25 percent being health insurance.

Derek said the West Bengal Chief Minister had written to the Finance Minister in this regard and many Opposition MPs had also raised the issue.

“They won’t listen to us…,” he said, adding that the finance minister should at least listen to road transport and highways minister Gadkari. Derek also dismissed the government’s argument that the GST Council can change it. “That’s a flawed argument,” he said, adding that the NDA also has a majority in the council.

“We cannot allow the finance minister to hide behind the curtain of the GST Council. This is a middle class problem. This is not a political problem,” Derek said.

Congress MP Renuka Chowdhury has expressed concern over banks not issuing credit cards to senior citizens.