Hyderabad, March 1: Though the common man is worried over the increase in service tax rate in the just announced Union Budget, it will increase the state’s share in the devolution from the Central taxes, according to Andhra Pradesh finance minister K Rosaiah.
The state is expected to get Rs 400 crore additional income from the increased service tax, Mr Rosaiah said in the state Assembly. Thus the state’s share in the income for service tax would increase to Rs 1,000 crore from the current estimated Rs 600 crore.
This apart, the government is also anticipating about Rs 1,000 crore additional income from the devolution of Central taxes, the finance minister said. This would take the additional income anticipated from the Central taxes by Rs 1,400 crore.
Mr Rosaiah said that industrial growth in the state averaged at 6.28% in the last two years, whereas 5.67% average growth rate was registered in the previous nine years. He said that the government would try to maintain the industrial growth of about 7% in the remaining three years.
