At least six bills to amend various enactments were introduced in the AP Legislative Assembly today including a bill to amend the AP Value Added Tax Act facilitating the increase of tax on petrol and diesel and to slash tax on aviation gasoline in the State.
The State Minister for Labour and Employment Atchanaidu, introduced the bill on amendment to AP VAT Act, on behalf of the State Finance and Commercial Taxes Minister Yanamala Ramakrishnudu.
Apart from the VAT Act, K. Atchanaidu introduced The AP (Issuance of integrated registration and furnishing of combined returns under various labour laws by certain establishments) Bill, 2015, the AP Labour Welfare Fund (Amendment) Bill, 2015, The Industrial Disputes (Andhra Pradesh Amendment) Bill, 2015, The Contract Labour (Regulation and Abolition) Andhra Pradesh Amendment Bill 2015, and the Factories (Andhra Pradesh Amendment) Bill, 2015.
As per statement of objects and reasons, the VAT amendment bill seeks to revise the rates of petrol from 31 per cent to 31 per cent plus Rs 4 per litre and on diesel from 22.25 per cent to 22.25 per cent plus Rs 4 per litre and on Aviation Gasoline to bring it down from 33 per cent to 1 per cent respectively.
The revision in the rates of tax on petrol and diesel is expected to generate a tax revenue of Rs 171 crore per month off-setting the fall in revenue on account of steep fall in the prices of petrol and diesel.
Earlier in January, the State amended the APVAT Act to reduce the rate of tax on Aviation Turbine Fuel from 16 per cent to 1 per cent, with the objective of developing the aviation sector, which leads to faster economic growth.