The Punjab Cabinet today gave nod to launch insurance scheme for 1.86 lakh traders, providing accidental death and disability cover besides slashing VAT on iron and steel products which would cost Rs 225 crore to state exchequer.
Punjab cabinet also rolled back VAT on cigarettes from 50 per cent to 20.5 per cent (plus 10 per cent surcharge) to check its smuggling.
A decision to this effect was taken here at a meeting of the Cabinet chaired by Punjab Chief Minister Parkash Singh Badal here this evening.
The insurance scheme called as Social Security Scheme scheme would cover as many as 1,86,543 dealers/businessmen, who have a turnover up to Rs 1 crore.
However, the businessmen, who were covered under any other social security scheme of Punjab would not be eligible for this scheme.
Under this scheme, insurance covers would be extended to the beneficiaries, including Life Insurance (Accidental Death and Disability Insurance) with cover of Rs 2 lakh per beneficiary, including accidental death and permanent or partial disability, health insurance cover to meet meeting expenses of hospitalisation of up to Rs 50,000 per beneficiary.
Both private and public hospitals would be empanelled to provide smart card based cashless hospitalisation to the beneficiaries, an official release said.
In order to provide services in an effective and efficient manner, at least one hospital would be empanelled for 1,000 beneficiaries.
Under Fire Insurance a cover of Rs 5 lakh per beneficiary for the losses caused due to fire would be available.
The state government would bear an expenditure of Rs 25 crore annually on account of insurance premium.
In another significant decision, the Cabinet approved an economic package to revive the Iron and Steel Industry of the state thereby giving a major relief to this sector on the request of the members of the Iron and Steel Industry Association.
Conceding the demand of iron and steel industry, the Cabinet decided to slash the rate of VAT from 4.50 per cent (plus 10 per cent surcharge) to 2 per cent (plus 10 per cent surcharge. It also reduced advance tax on finished goods to 2.50 per cent.
