Hyderabad: Government of Telangana is contemplating to increase VAT on the services provided by hotels, restaurants and caterers.
The current VAT rate is 14.5%. It may be increased to 24.5% which is the highest in the entire India.
Finance Minister, Mr. E. Rajender convened a meeting yesterday to discuss issues pertaining to enhancement of commercial taxes.
Though GST is likely to be implemented from 1st July 2017, State Government is increasing taxes prior to its implementation to pool up additional revenues.
According to the news published in DC, the officials estimate that this increase in VAT will result in generating an additional amount of about Rs. 1,000 crore.