State gift is a hike in VAT

The state government on Wednesday issued orders increasing the Value Added Tax rate from 12.5 per cent to 14.5 per cent. The commercial taxes commissioner, Ms Rajeev Ranjan Acharya, said the rate would apply to goods under Schedule V of the AP VAT Act.

Automobiles, spares, electrical and electronic goods, cosmetics, soaps, detergents, toothpaste, confectioneries, soft drinks, processed food and building materials will cost more.