Andhra Pradesh - Foodgrains, textiles to cost more as
Govt hikes VAT rate
Prices of food grains, textiles, garments and all
industrial inputs are set to go up in Andhra Pradesh,
with the Government increasing the primary VAT (Value
Added Tax) slab of 4 per cent to five per cent.
Notwithstanding protests by trade and industry sectors,
the Government has issued an Order on Tuesday evening
increasing the slab rate.
The Government Order is seen as preparing the ground for the
country-side Goods and Service Tax (GST) that is expected to come next financial
year.
“This is retrograde tax. The Government should remove food grains from the
purview of taxes as it results in further increase of food inflation,” Mr Nitin
K Parekh, Chairman of Tax and Commerce Committee of Federation of Andhra Pradesh
Chamber of Commerce and Industry (FAPCCI), told Business Line.
Textile and garments, which have been brought under the VAT net only recently,
would have to pay one percentage point of additional tax.
Mr Balaji, who runs a grocery in Gandhi Nagar area, said the tax increase would
result in increased prices of essential commodities. “Sales volumes of these
commodities have seen a dip last month as consumers are cutting down spending,”
