Hyderabad, March 27: The State Assembly today passed four Bills meant for further amendments to the Andhra Pradesh Value Added Tax Act, 2005, The AP tax on professions, Trades, Callings and Employments Act, 1987 and the AP Excise Act, 1968.
Registering protest against the Government’s decision to impose tax burden on the people, members of the CPI, CPM and BJP staged a walkout from the Assembly. Discussion on the Bills took place in the absence of main opposition TDP members who were earlier suspended from the House for the day.
As for objects and reasons in respect of APVAT Act, 2005, the Government has included items like bed sheets, pillow covers, towels, embroidery and other articles under entry 45 of Schedule-1 making them liable for tax which was enhanced from 12.5 percent to 14.5 percent.
It also included 52 items of goods sold by Defence canteen stores to the defence personnel in Schedule-1. It has further decided to increase the rate of tax on ATF (Aviation Turbine Fuel) from four percent to 16 percent (20 percent in other major states).
Due to amendment to the Schedule-V i.e. enhancement of tax rate from 12.5 percent to 14.5 percent, the financial gain of revenue would be between Rs 850 crore to Rs 900 crore per annum.
As for hike in tax for ATF, the revenue gain would be Rs 120 crore per annum.
With regard to tax on professions and trades, the proceeds of the tax, penalties, interest or other amounts recovered under this Act, shall be apportioned and paid annually to local bodies i.e. municipal corporations, municipalities and gram panchayats. It was proposed to retain the amount of profession tax collected in the respective local bodies in order to provide funds for payment of salaries to municipal employees.
With regard to amendment of the AP Excise Act, 1968, the punishment of imprisonment is enhanced from one year to three years with an intention to discourage smuggling of intoxicating drugs/liquor and to sell illicit diluted/adulterated liquor that results in grievous hurt or death.
–Agencies