The three bills, including AP Value Added Tax (Amendment) bill, 2012, AP Value Added Tax (Second Amendment) bill,2012) and AP Value Added Tax (Third Amendment) Bill,2012, were piloted by Civil Supplies Minister Sridhar Babu on behalf of Chief Minister N.Kiran Kumar Reddy. The AP Value Added Tax (Amendment) Bill ,2012 aims to exempt goods like zari, fabrics, made-ups and garments produced and sold by the powerloom units in the state to dealers registered under the Act.
There will be no loss of revenue and no loss of revenue on account of reduction of VAT from 14.5 per cent to 5 per cent on non-woven fabrics, the Minister said. On account of inclusion of textiles and fabrics and sugar under vat at five per cent, there will be additional revenue to the tune of Rs 600 crore per annum while on increase of lower slab of VAT from 4 per cent to 5 per cent , the revenue gain would be about Rs 1200 crore per annum. Due to reduction of rate of tax on RCC pipes and PCC pipes and cement poles from 14.5 per cent to 4 per cent, net revenue loss would be about Rs 4.00 crore per annum while increasing of rate of tax on tobacco products including Gutkha, Khara Masala and Cigarettes from 14.5 per cent to 20 per cent , the estimated gain of revenue would be Rs 170 crores per annum, the Minister added. UNI