Andhra Pradesh government revises Profession Tax structure

Vastavam web: The Andhra Pradesh government on Monday revised the Profession Tax structure, enhancing one slab rate from Rs 1,250 to Rs 2,000 and continuing the second slab at Rs 2,500 for different professions, to net an additional revenue of about Rs 161 crore per annum. The state government realised Rs 231.68 crore in the form of Profession Tax in 2019-20 and Rs 221.80 crore the previous year.

However, due to the impact of coronavirus, profession tax collection up to July in the current financial year was only Rs 46.85 crore as against Rs 69.60 crore in the corresponding period last year, a fall of 32.70 per cent, according to Special Chief Secretary (Revenue), Rajat Bhargava. Taking various factors into consideration, the government has decided to rationalise the rates of Profession Tax for certain categories, ensuring that the maximum tax payable by any person did not exceed Rs 2,500 per annum, the Special Chief Secretary said.

Under the new structure, public telephone operators have been removed from the profession tax payers list, while restaurants, take-away food points, canteens and curry points were added anew, with a tax rate of Rs 2,500. The Revenue Special Chief Secretary also issued an order directing 18 government departments, appointed as profession tax collection agents, to amend the relevant Act or Rules administered by them making payment of profession tax a pre- condition for grant or renewal of licenses and permits.