Did Trinamool Achieve a 'Moral Victory' After GST on Health Insurance Was Scrapped?
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Synopsis
The Trinamool Congress celebrates a significant win as the Union government removes GST from health insurance. This decision, influenced by Chief Minister Mamata Banerjee's advocacy, promises financial relief for families. With the GST Council's new structure, the political landscape shifts, showcasing the power of public pressure.
Key Takeaways
- GST on health insurance waived
- Financial relief for families
- Mamata Banerjee's advocacy proves effective
- Political shifts seen in government response
- GST Council simplifies tax structure
Kolkata, Sep 4 (NationPress) The Trinamool Congress has declared a moral victory following the Union government's decision to waive the Goods and Services Tax (GST) on personal health and life insurance policies.
On Wednesday, the Trinamool Congress took to its official X account, crediting West Bengal Chief Minister Mamata Banerjee for raising concerns over the government's initial plan to impose GST on life insurance premiums and advocating for a repeal.
"This is a victory for the common people. It demonstrates how a tone-deaf regime only reacts when pressured. From the outset, @MamataOfficial cautioned the Finance Minister that taxing insurance premiums was harsh, anti-people, and would dissuade families from securing their futures, leaving them vulnerable to financial distress during crises," the Trinamool Congress stated.
The party also shared a letter from Chief Minister Banerjee to Union Finance Minister Nirmala Sitharaman, requesting a reassessment of the GST Council's decision to levy an 18 percent GST on life insurance policies, dated August 2, 2024.
Following a GST Council meeting on Wednesday, the Centre eliminated the GST on individual health and life insurance policies.
This decision, effective from September 22, abolishes the previous 18 percent tax, offering relief to families and the healthcare sector.
In light of the Centre's decision, the Trinamool Congress asserted that the BJP-led Central government has yielded to pressure.
"The @narendramodi Government has finally relented. This reversal shows that @BJP4India only responds when cornered. We will persist in opposing every such anti-people decision in Parliament, on the streets, and among the populace," the Trinamool Congress commented.
The GST Council, chaired by Finance Minister Sitharaman, on Wednesday, streamlined the indirect tax structure, reducing the existing four slabs to two—eliminating the 12 percent and 28 percent rates while maintaining the 5 percent and 18 percent slabs.
Changes to GST rates on services will be enacted from September 22.
The GST Council has lowered the tax rate on personal care products such as hair oil, shampoo, toothpaste, and dental floss from 18 percent to 5 percent.
Conversely, it has increased the tax on cigars, cheroots, cigarillos, cigarettes, and other tobacco products, including substitutes, from 28 percent to 40 percent.
Point of View
We recognize the significance of the Trinamool Congress's claims regarding the GST rollback. This outcome reflects broader public sentiments and the ongoing necessity for government accountability. The decision showcases the impact of advocacy and the importance of responsive governance in addressing the needs of the populace.
NationPress
03/09/2025
Frequently Asked Questions
What was the recent decision regarding GST on health insurance?
The Union government has waived the Goods and Services Tax (GST) on individual health and life insurance policies, effective September 22.
Who advocated for the GST exemption?
West Bengal Chief Minister Mamata Banerjee raised objections to the GST on insurance premiums and urged its repeal.
What impact will this decision have on families?
Eliminating the 18 percent GST will provide significant financial relief to families seeking health insurance.
How has the Trinamool Congress reacted?
The Trinamool Congress claims a 'moral victory' and asserts that the BJP-led government has yielded to public pressure.
What changes were made to the GST structure?
The GST Council restructured the tax system, reducing the number of slabs from four to two and adjusting rates on various items.
