"Mahua Moitra asserts that the rollback of GST on health insurance is due to Mamata Banerjee's efforts, with the TMC pledging opposition to policies deemed harmful to the public."
The Finance Minister, Nirmala Sitharaman, has announced significant GST reforms, which have been met with praise from the Trinamool Congress (TMC) party. The reforms come amidst claims that the government acted under duress to ease the pressure from Donald Trump's 50% tariffs.
The GST Council has approved sweeping changes, reducing the four-tier GST structure to two slabs of 5% and 18%. Sin and luxury goods will continue to draw a 40% GST. However, the highlight of the new GST regime, dubbed "NextGen GST", is the exemption for life and health insurance premiums, a key demand of the TMC.
TMC MP Mahua Moitra took to X to acknowledge the party supremo and West Bengal Chief Minister, Mamata Banerjee's persistent efforts. Moitra wrote that Banerjee had written to Sitharaman on 2 August 2024, urging the withdrawal of 18% GST on life and health insurance policies. Moitra further stated that the Finance Minister has finally complied, albeit to offset the pain from Trump's 50% tariffs.
The opposition parties have supported Banerjee in her efforts to abolish GST on insurance premiums. The TMC has claimed credit for the government's decision, describing the rollback as a major win for citizens.
Essential goods such as ultra-high temperature milk, paneer, Indian breads, key educational supplies, and 33 life-saving drugs, including cancer medications, have been moved to the zero-tax bracket. Several personal care products and food items will now attract only 5% GST.
In a strongly worded statement, the TMC accused the central government of ignoring repeated pleas until political pressure forced its hand. The TMC has framed the new GST reforms as citizen-centric, emphasising the benefits to the common people.
The new GST regime is set to come into effect on 22 September. The rollback on insurance premiums is a significant change that is expected to make insurance more affordable for many families. The TMC has stated that this move will deter families from being deterred from securing their future due to the burden of taxes.
The opposition parties have hailed the government's decision as a testament to the power of persistent pressure. They insist that the government acted only under duress, and the rollback on insurance premiums proves that their efforts can deliver results. The TMC has described the government's decision as a major victory, marking a significant shift in the GST policy.
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