Assembly passes Bill revising VAT on liquor
VIJAYAWADA: The State Assembly on Thursday passed the Andhra Pradesh Value Added Tax (Amendment) Bill, 2021 and the Andhra Pradesh Goods and Services Tax (Amendment) Bill, 2021, which were tabled by Finance Minister Buggana Rajendranath. Speaking on the occasion, the Finance Minister said under the Andhra Pradesh Value Added Tax Act, 2005, liquor for human consumption was taxed at the rates ranging from 130% to 190%.
“Telangana reduced the VAT rate to a flat 70% on all categories of liquor in 2016. There is no VAT on liquor in Karnataka. In order to bring about parity in levy of VAT with the neighbouring States, it has been decided to rationalise the rates of VAT on various categories of liquor for human consumption in the State and hence brought in Andhra Pradesh Value Added Tax (Amendment) Bill, 2021 to reduce the VAT rates on alcoholic beverages,” he said.
Speaking on the second Bill, the Finance Minister said Goods and Services Tax provides for levy and collection of taxes on intra-state supply of goods and services by the State government and the amendments are being made for checking tax evasion or to reduce the compliance burden of the taxpayers.
He said the Bill intends to amend Section 7 of the Act, to ensure levy of tax on activities or transactions involving supply of goods or services by any person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration.
Another amendment is to omit subsection (5) of section 35 and to substitute a new section 44 so as to remove the mandatory requirement of getting annual accounts audited and the reconciliation statement submitted by specified professional and to remove the mandatory requirement of furnishing a reconciliation statement duly audited by specified professional and to provide for filing of the annual return on self-certification basis.The Bill empowers the chief commissioner to exempt a class of taxpayers from filing the annual return.
Bill passed
Assembly passed the Andhra Pradesh Road Development Corporation (Amendment) Bill, 2021, introduced by Transport Minister Perni Venkatramaiah.