New Delhi: The GST council meeting is scheduled next month. According to the reports the meeting will discuss plans to reduce taxes on several items. These include commonly used services such as cement salons and beauty parlors as well as life and health insurance premiums. Reports suggest that there is also a proposal to bring food items and clothing under the 5 percent slab. The GST Council is chaired by Union Finance Minister Nirmala Sitharaman. Members from all states are also part of it. The Council is scheduled to meet on September 3 and 4. A decision will be taken on reducing the tax slabs. This will simplify the tax system and eliminate classification issues. The government wants to ensure there is no confusion regarding taxation. There is a proposal to reduce the tax on cement from 28 percent to 18 percent. It is important to note that the construction and infrastructure sectors had been demanding this for a long time. Cement is an essential building material. It is expected that this move will bring down the cost for consumers. However this will only happen if companies pass on the benefit of the tax reduction to customers. Here are some of the key details: Taxes are likely to be reduced from commonly used services such as cement salons and beauty parlors as well as life and health insurance premiums. There is a proposal to reduce the tax on cement from 28 percent to 18 percent. The government is considering whether the tax on certain common services can be reduced from 18 percent to 5 percent. Small salons are already been exempted mid- and high-end salons are subject to 18% GST Term insurance and health insurance policies purchased by people will have zero GST. For most goods and services the slabs will be 5% and 18%. Certain specific items and luxury goods will attract a 40 percent tax. Some states like West Bengal have suggested raising the GST upper limit beyond 40 percent. However sources say this could send a wrong signal. Moreover it would require major changes in the law. The central government believes that small cars (up to 4 meters in length) should be taxed at 18 percent while big cars should be taxed at 40 percent. Currently these vehicles attract a total of 50% GST (28 percent GST plus 22 percent cess).