A.P government has abolished a dual tax system on rice and paddy. Before this abolition, tha A.P government used to collects market cess at one per cent rate on paddy that comes to the markets. At a later stage, the Government collects another cess with the same rate on rice from the millers, leading to the double taxation on the commodity.
As this tax adds the overall cost to the rice prices which become high so the consumers and the rice millers urge the government to remove the tax at one level so as to cure the rice prices.
The government takes their demand into consideration and The Chief Minister, N. Kiran Kumar Reddy, has approved the proposal to permanently abolish the market cess on rice, a Government release said.