The State Government of Andhra Pradesh increases the VAT (Value Added Tax), rates from Four to Five Percent(%) on various goods about 3,000 under food grains, textiles, garments and all industrial inputs, which lead the price hike on the same in the reign of Mr. Kiran Kumar Reddy, CM on his birthday by releasing a G.O. No. 1718.
VAT is also know as Sales Tax, one of the major income generating Indirect Taxes of AP State. As the Finance Department of the State increases slab rate of VAT with 1% of 4% VAT. the Business and Economy of the State has been effected drastically. Hence the most of the Business people thing about their Business, and Customer. Even the the Accounting formula has been changed, so the Financing Servicing companies like Auditing and Accounting Service providers would make new calculations from the next day on wards.
Mr Nitin K Parekh, Chair of FAPCCI - This is retrograde tax. The Government should remove food grains from the purview of taxes as it results in further increase of food inflation,