September 4, 2025 Visakhapatnam *GST reforms herald relief for the poor and middle class:* _*-Palla Srinivasa Rao*_

 

                by Sharma K.V. Editor
The Telugu Desam Party (TDP) has warmly welcomed the Centre’s landmark decision at the 56th GST Council meeting to rationalise tax slabs and reduce levies on essential goods and services, terming it a watershed reform that promises tangible relief to the poor, the middle class, farmers and small businesses.

TDP State president 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 has extended a strong assurance for the future of the poor and the middle class,” he observed.

Under the revised structure, the four-tier GST system has been pruned to two slabs — 5% and 18% — with several items of daily consumption moved to the lower bracket. Ultra-high temperature milk, paneer and bread have been exempted altogether, a step Mr. Rao said would directly ease the cost of living.

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

The exemption of GST on personal life and health insurance policies — including family floater and senior citizen schemes — is expected to bring financial protection within the reach of millions. Education has also been fully exempted from GST, a move Mr. Rao said would make learning more affordable for students and parents alike.

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

“These reforms will not only reduce household expenditure but also stimulate consumption, bolster domestic markets, and attract investment, thereby widening the arc of national economic growth,” Mr. Rao noted.

Recalling the TDP’s founding ethos of championing the welfare of farmers, workers and the middle class, Mr. Rao asserted that the Centre’s decision resonated with those very priorities. He expressed gratitude on behalf of the party to Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman and the GST Council for what he called a “historic intervention in the economic life of the nation.”

— *Palla Srinivasa Rao State President, Telugu Desam Party*