Telengana Assembly passes Bill reducing VAT on Mobile Phones

The Telangana Value Added Tax (Amendment) Bill, 2016  has been passed by the Legislative Assembly on Wednesday. The Bill was introduced by Minister Talasani Srinivas Yadav. The Bill aims at bringing down the Value Added Tax on mobile phones from the present 14.5 per cent to five per cent.

The Minister said that on account of high tax in Telangana compared to the neighbouring States of Andhra Pradesh and Karnataka, trade diversion was taking place and the amendment would help in enhancing the revenue in the State to the extent of Rs. 5 crore. Supporting the Bill, BJP member G. Kishan Reddy said it would be helpful to common people as mobile phone usage would further increase in the coming days. The high VAT on other goods should also be reduced.

TDP MLA R. Krishnaiah said in the wake of the push given to cashless transaction after demonetisation, it was a welcome decision.

Congress member G. Chinna Reddy, backing the Bill, said it was a great move as even illiterates, daily wagers and farm labourers use the cell phones.

A Bill restructuring the earlier duty structure ranging from 130 per cent to 190 per cent with a uniform VAT at 70 per cent for liquor, beer and wine to check the inflow of wine and liquor from the neighbouring States where tax rates were less was also passed in the Assembly.

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