The Telangana Legislative Assembly today passed a Bill reducing VAT from 14.5 per cent to five per cent on cell phones.
State Animal Husbandry Minister T Srinivas Yadav, who moved the Telangana Value Added Tax (Fourth Amendment) Bill, said the Bill seeks to reduce VAT from 14.5 per cent to five per cent.
According to the statement of objects and reasons of the bill, trade diversion has been taking place from Telangana to neighbouring states due to higher rate in the state.
"On account of this amendment, state revenue to the extent of Rs 5 crores will be protected," the Financial Memorandum of the Act said.
Pointing out that reducing VAT would benefit common people, opposition Congress and BJP also supported the Bill.
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The Legislative Assembly today passed several other bills, including on land acquisition.
Legislative Affairs Minister T Harish Rao said the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Telangana Amendment) Bill, 2016 is for government projects and not for private ventures.
"If it is SEZ, if it is a private industry, we will go by 2013 Act (made by parliament)," Harish Rao said.
The bill would provide a fair deal to land owners, he said.
Responding to Opposition Leader (Congress) K Jana Reddy's contention that the Assembly cannot pass the bill if it is an amendment to the 2013 land acquisition act, Chief Minister K Chandrasekhar Rao said the state government has the power to make the act under Article 254 of the Constitution.
Several states in the country have already passed such acts because the 2013 act was passed by the then Congress-led government "without mind being applied to it", Rao said.
He also hit out at opposition parties and others over their protests against land acquisition for Mallanna Sagar project in the state.
