The Andhra Pradesh Government has reduced value-added tax on (VAT) plastic moulded furniture to 5 per cent from 14.50 per cent, giving a big relief to the middle-class and lower income groups.

The trade and industry has been asking the Government to reduce tax on plastic furniture, saying that it is the middle-class and lower income group people that use this furniture most.

The Government, however, made it clear that the change would apply only to plastic moulded furniture. If it contains any other material such as steel, aluminium, wood and glass, the lower tax rate would not apply, Asutosh Mishra, Principal Secretary (Commercial Taxes and Excise, Government of Andhra Pradesh), said.