The state government is likely to get the AP VAT Act-2003 enacted in the assembly by March 15, which will repeal the APGST Act-1957 as a preparatory measure for implementation of value-added tax (VAT) from the new financial year 2003-04.
Though APGST would cease to exist, CST will continue till VAT is fully implemented. Later, CST will also be phased out.
The commecial department is making efforts to complete allocation of tax payer identification number (TIN), a unique number on the lines of PAN, before March 20, said N Ramesh Kumar, the commissioner (commercial taxes).
There would be three types of taxes -- VAT, turnover tax (TOT) and Special Additional Tax (SAT).
At present, there are six taxes under the commercial taxes -- APGST &CST, entertainment tax, profession tax, luxury tax, entry tax, horse race betting tax in addition to rural development cess.
In 2001-02, sales tax and CST contributed Rs 7,018crore and Rs 606 crore respectively to the state exchequer. Of this, ST on petrol, diesel and liquor was in the range of 40-45per cent.
It is estimated that with the introduction of VAT, the revenue loss for the state would be around Rs 700 crore, in the form of input tax rebate, exempeted goods and input refund on exports. At least Rs 450 crore worth input rebate will have to be given by the department, it is learnt.
