Financial Daily from THE HINDU group of publications
Tuesday, Dec 21, 2004
Financial Daily from THE HINDU group of publications Tuesday, Dec 21, 2004 |
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Government
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Taxation VAT Ordinance to be promulgated in State next month Our Bureau
Hyderabad , Dec. 20 THE Andhra Pradesh Government will promulgate an Ordinance in January 2005 to pave the way for value-added tax (VAT) regime. The Minister for Commercial Taxes, Mr Konathala Ramakrishna, told presspersons here on Monday that the Government would organise a convention on December 30 to seek views from traders and chambers of industries and commerce. A draft new VAT Bill comprising simplified procedures would be circulated among the traders for their feedback. "We will incorporate their suggestions," he said. He released the draft Bill on Monday. Earlier, he addressed the State-level convention of Deputy Commissioners to take stock of the department's performance. According to him, the Centre agreed to compensate the losses incurred by the State in implementing VAT. "In the first year, compensation will be 100 per cent. The subsequent years would attract compensations to the tune of 75 per cent 50 per cent, respectively," he said. The Central Sales Tax would continue for two years. It would be phased out once VAT got stabilised. "Only dealers with annual turnover of over Rs 40 lakh will be liable to pay VAT. Of the four lakh dealers, only one lakh would be VAT dealers," he said. Asking the traders and chambers to come out with their views before January 5, he said the State was committed to implement the new tax regime from April 1. Up to November 2004, the department recorded collections to the tune of Rs 6,657.50 crore as against Rs 5,551.49 crore, showing a growth of 19.92 per cent. The figure, however, fell short of the target of Rs 6,780.71 crore. For the fiscal, the department set a target of Rs 11,242.44 crore. The growth has been quite impressive, keeping in mind the average eight per cent growth in the last three years. On the irrigation front, the State Government proposed to increase the present budgetary allocation from Rs 4,200 crore to Rs 7,000 crore from next year. This would take care of the bulk of the proposed Rs 46,000 crore spending on major irrigation projects in the State.
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