Date:24/10/2007 URL: http://www.thehindu.com/2007/10/24/stories/2007102460990800.htm

Andhra Pradesh - Hyderabad

MLCs to become ex-officio members of civic bodies

Special Correspondent

Cabinet also resolves to amend AP Chit Fund Act
Decision taken to enhance VAT on tobacco products

HYDERABAD: Members of the State Legislative Council too will be made ex-officio members of municipalities and municipal corporations in the State like MLAs. Four relevant legislations — AP Municipalities Act, three municipal corporation Acts of Hyderabad, Visakhapatnam and Vijayawada — will be amended during the forthcoming winter session of the Assembly to introduce this change.

The Cabinet, which took this decision at its meeting here on Tuesday, also resolved to amend the AP Chit Fund Act to regulate the chit-fund business. Whether it would have any impact on Margadarsi Chit Funds owned by the Eenadu Group of companies of Ch. Ramoji Rao, was not immediately known. Briefing media later, Information Minister A. Ramanarayan Reddy said the Act was being amended in line with the recommendations of the Group of Ministers. Another decision was taken to enhance the VAT on tobacco products like Gutkha, kimam and kara to 25 per cent by amending the VAT Act. This would be to discourage consumption of these products.

The Cabinet decided to ensure salaries and other allowances to MLAs and MLCs through three heads — salary, Constituency allowance and office expenditure, as against seven heads now. For this, the relevant Act would be changed. The Excise Act too would be amended during the Assembly session to empower the Excise staff to deal with illicit liquor seized up to 20 litres and enhance punishment to offenders to five years’ rigorous jail-term.

Hike in DA

The meeting ratified DA hike at 5.6 per cent for Government staff from July 1, 2007 which would place an additional burden of Rs. 645.75 crore on the exchequer, and cleared the proposal to create 3,756 posts of auxiliary-nurse midwives.