Visakhapatnam: TDP welcomed the Centre’s landmark decision of GST rate cuts at the 56th GST Council meeting that aims to rationalise tax slabs and reduce levies on essential supplies and services that promise tangible relief to the poor, middle class, farmers and small business units.

TDP State president and Gajuwaka MLA Palla Srinivasa Rao described the measures as a true ‘Diwali gift’ to households across the country. “By easing the burden of indirect taxation, the Centre extended a strong assurance for the future of the poor and middle class,” he observed.

Under the revised structure, the four-tier rate structure has been cut to two slabs, i.e., 5 percent and 18 percent, with several items of daily consumption falling under the lower GST bracket. Ultra-high temperature milk, paneer and bread have been exempted from tax which would directly ease the cost of living, the TDP state president hailed.

Significantly, 33 life-saving drugs have been exempted from GST, while the tax on several other medicines has been cut down to 5 percent. Three critical drugs for cancer and other severe ailments will now attract zero tax. This is a milestone for public health. Families battling against chronic illnesses will finally find much-needed respite, the Gajuwaka MLA stressed.

The exemption of GST on personal life and health insurance policies is expected to bring financial protection for millions. Education has also been fully exempted from GST, a move, the MLA said, would make learning more affordable for students and parents.

In the agriculture sector, GST on farm equipment has been reduced to 5 percent from 12 percent, providing direct support to farmers and strengthening rural economies. The lowering of tax on cement and steel to 18 percent from 28 percent is expected to spur real estate and infrastructure activity, Srinivasa Rao said.

“The GST reforms will not only reduce household expenditure but also stimulate consumption, bolster domestic markets, and attract investment,” the MLA underlined.

Recalling the TDP’s ideologies of championing the welfare of farmers, workers and the middle class, Srinivasa Rao asserted that the Centre’s decision resonated with the party’s priorities. He expressed gratitude on behalf of the party to Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman and the GST Council for bringing in economic transformation.