The Andhra Pradesh government which has set an ambitious target of Rs.52,618 crore revenue collection for 2016-17 ruled out any proposal to enhance tax rate.
The State Government which netted Rs.39,854 crore tax revenue last fiscal as against the target of Rs.44,423 crore quashed the speculation that it is gearing up to increase Value Added Tax on many commodities from 5 per cent bracket to 14.5 per cent and bring the exempted items under the purview of VAT.
“There is no such discussion or proposal under the consideration of the government. In fact there is not even any thinking in that direction,” said Principal Secretary, Finance, P.V.Ramesh, here on Thursday.
The enhanced revenue target will be met through increasing efficiency of tax collection as well as signals that the economy will pick up giving required momentum for tax collection, he said.
There is basis for the government’s optimism. Many proposed projects are coming to fruition this year apart from capital construction work.
