BJP’s southern allies — the Telugu Desam Party (TDP) and Jana Sena Party — have demanded a rollback of the goods and services tax (GST) levied on health and life insurance and handlooms.
The demand was raised by BJP’s two allies during the discussion in the Lok Sabha on the Budget. Speaking on the budget, TDP’s Narasaraopet MP, Lavu Srikrishna Devarayalu, demanded that long-term capital gains tax be reduced and indexation be brought back. “A lot of members have raised a point with regard to the reduction in long-term capital gains tax from 20% to 12%. They also mentioned about indexation… There is also a lot of talk outside. So, I hope the finance minister will look into it. There should be a relook at indexation because middle-class people think that real estate is one thing that they can safely invest in. We feel that it should be protected”
Devarayalu also made a strong case for the rollback of GST on health and life insurance. “There is 18% GST on health insurance policies. “If 75% people have life insurance, only 25% of them will have health or medical insurance. These are uneven numbers. It should be the opposite way. More people should have health or medical insurance and less people should have life insurance or the number should be equal, at least. But somehow it is skewed in one direction. It can be addressed only if GST is reduced so that more people can have access to health insurance,” said Devarayalu.
Jana Sena’s Machilipatnam MP Vallabhaneni Balashowry also demanded that GST on life and medical insurance be rolled back.
