Andhra Pradesh - Hyderabad   

Cigarette put in VAT basket, to cost more

Special Correspondent

State withdraws exemption

HYDERABAD: Cigarettes are going to become dearer from Sunday.

This follows a notification issued by the State Government withdrawing the exemption on cigarettes under the Andhra Pradesh Value Added Tax Act, 2005 with effect from Sunday. So, cigarettes will be liable for tax at 12.5 per cent.

Tobacco products, including beedis, will, however, continue to be exempted from VAT. Hitherto all tobacco products were in the exempted list in Schedule I of AP VAT Act 2005.

Cigarettes were deleted from the schedule, which is the list of goods exempted from VAT, according to a press note issued here by the Government.

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