More Stories

Informist, Wednesday, Aug 7, 2024

NEW DELHI – Adding a pinch of sarcasm, Finance Minister Niramala Sitharaman today said the opposition's demand for withdrawal of the 18% goods and services tax on health insurance premiums was "thoroughly amazing". She rather suggested the opposition to bring the proposal to the GST Council through their states' finance ministers. 

She slammed the opposition for politicising the issue in Parliament and asked if the members had written to the finance ministers of opposition-ruled states to withdraw the tax. She also said that amendments pertaining to GST have to be made in the GST Council, which is a constitutional body, and added that these amendments don't come through Parliament.

"Medical insurance was being taxed even before the implementation of GST in every state. It is not a new thing. Have the opposition leaders spoken to their respective states? Did you write to your finance ministers who sit at the GST Council meeting? States have a two-thirds share in the council," Sitharaman said in the Lok Sabha while replying on the Finance Bill 2024.

The finance minister said that the matter was discussed thrice in the GST Council meeting. The council discussed the matter at its 31st meeting, 37th meeting, and 47th meeting.

The protests for withdrawal of GST on health and life insurance premiums commenced after a letter written by Road Transport and Highways Minister Nitin Gadkari to Sitharaman about the same leaked into the public domain. The opposition was quick to pick up the issue in the ongoing Budget session. The members from the Congress, the Trinamool Congress, and other opposition parties raised the demands in both the houses of Parliament. The opposition parties also protested in Parliament premises seeking the withdrawal of GST.

While the Lok Sabha today passed the Finance Bill, 2024, the Rajya Sabha held discussion on the Appropriation Bill, 2024, which was passed by the Lok Sabha earlier. Rashtriya Janata Dal member Manoj Jha advocated for a 1% tax on the super-rich for closing the wealth gap. Highlighting the huge wealth gap in the country, the RJD member stated that 10% of the people in the country have 80% of the wealth. He also reiterated the opposition’s demand for a nation wide caste census.

Trinamool Congress member Derek O’Brien sought the rollback of the 18% GST on the health and life insurance premiums. The finance minister will reply to the Appropriation Bill in the Upper House on Thursday.  End

Reported by Kuldeep Singh

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel ++91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.