New Delhi: The Union government aims to slash taxes on small cars and insurance premiums as part of a sweeping reforms of its goods and services tax (GST), a source said on Monday.

The government revealed plans over the weekend for the largest tax overhaul since 2017, with consumer, auto and insurance companies likely to emerge as the biggest winners when product prices drop from October, once the reform is approved.

The government has suggested lowering GST on small petrol and diesel cars to 18% from the current 28%, said the source who is directly involved in the matter. The consumption tax on health and life insurance premiums may also be lowered to 5% or even zero from 18% currently, the same source said.