AP Mulls ST Sops On Promotional Activities

Hyderabad, Jan 12: | Updated: Jan 13 2004, 05:30am hrs
Giving further impetus to the ever-growing new product launches and convention business in the state, the Andhra Pradesh government has proposed to totally exempt sale tax on the `promotional sales' from the next fiscal.

Speaking to media after inaugurating the `Gitex Hyderabad 2004' at Cyberabad, state Chief Minister N Chandrababu Naidu said that his government is contemplating to exempt sale tax on all the promotional activities in the state from the next financial year.

"Since last year the promotional activity has increased in the state as more companies are test launching their products here," a senior official pointed out. Though there is no clear study done on the promotional sales, it is estimated to be around Rs 2,500 crore annually.

Speaking on the occasion, Union IT minister Arun Shourie, whilepPraising Mr Naidu for his IT initiatives, felt that most of these initiatives can be replicated in other parts of the country. "We have to learn from the experience of others, I like to take some of the projects and replicate them in other states," he added.

On the state public sector disinvestment process, Mr Shourie said: "We have learnt a lot by experience, still there is a lot to understand," while mentioning that the UP government's plan to divest sugar mills, on the lines of AP, hit the road block due to high court's stay.