CM promises tax cut on tea, coffee, salt, cashew nut

Hyderabad, Aug 30 (UNI) Andhra Pradesh Chief Minister Y S Rajasekhara Reddy today assured the House that the government will reduce the Value-Added Tax (VAT) on tea, coffee, salt and cashew nut.

While intervening in discussion on the Bill to amend the state's VAT Act, he said the tax on salt would be brought down to zero from the present four per cent and the tax on tea, coffee and cashew nut would be reduced to four per cent from 12.5 per cent.

Commercial Taxes Minister K Ramakrishana, who piloted the Bill, said the state had registered a 37.5 per cent growth in tax collection till July this year.

He said his department would meet the target of Rs 15,500 crore this year.

Though the state had incurred a loss of Rs 750 crore due to implementation of VAT last year, the Centre had provided Rs 400 crore as compensation, he added.

UNI BR/SM PK DB2129