HYDERABAD: The Kiran Kumar Reddy government was of the view that the state would be a "double loser" if it delays increasing the..
HYDERABAD: The Kiran Kumar Reddy government was of the view that the state would be a "double loser" if it delays increasing the lower slab of Value Added Tax from four to five percent. Already, 11 states have raised the rates to five percent.
In a press release by the Chief Minister's Office on Thursday, the state government has not changed the floor rate for the last six years. Rate of four percent was first imposed when VAT was introduced on April 1, 2005. The Central government has been compensating the states for the loss of revenue on account of reduction in Central Sales Tax from four to two percent. The state was losing over Rs. 2,000 crore every year by not raising the VAT to five percent, the release added.
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