Amid protests by the Telugu Desam members, the government introduced a set of three Bills in the Assembly on Thursday to amend the AP Value Added Tax (VAT) Act for three different purposes, including retention of VAT hike on textiles and other goods listed in Schedule IV.

The Telugu Desam members stood up as soon as the House met, seeking rollback of the VAT on these goods to the earlier 4 per cent level. They booed at Legislative Affairs Minister D. Sridhar Babu when he introduced the three Bills after question hour.

The three Bills, on being adopted by the House, will raise the tax exemption limit for annual turnover to Rs 7.5 lakh from the existing Rs. 5 lakh. Similarly, the maximum threshold limit for annual turnover in respect of turnover tax liability will be raised to Rs. 50 lakh from Rs. 40 lakhs.

The Bills will enable the government to enhance VAT on tobacco products, except beedi, to 20 per cent from the present 14.5 per cent as being done in other States at the instance of the Centre. The amendments will provide for bringing about harmony between the VAT rates on other goods and that listed in the Schedule IV.


  • TDP for rollback of the VAT on textiles to

    4 per cent level

  • Three Bills introduced to amend the AP Value Added Tax (VAT) Act