Punjab to withdraw 4% entry tax on several items

Font Size

Print

Feedback

Email

Discuss

Related Articles

New direct taxes code likely to hit PFC opsNSSO to estimate GST taxpayer baseProposed MAT rate could be cut by 1%Revenue secy hints at plugging tax leakages

Chandigarh, Jul 23: In a major relief to the state industry, Punjab government on Wednesday announced to withdraw 4% entry tax on several items including, dyes, chemicals, and cotton . As a result of it, the state government would forgo Rs 150 crore of revenue.

“We have decided to rollback the entry tax on dyes, chemicals, cotton, shoddy and worsted yarn and some of iron and steel items and a notification in this regard would be made within next seven to ten days,” Punjab excise & taxation, commissioner, A Venuprasad said here on Wednesday.

Punjab government, last year in November, imposed entry tax of 4% on various items such as sugar, iron and steel including scrap, dyes, chemicals yarn in bid to safeguard the interests of local industry and to check the leakage of tax revenue.

Since its imposition, government has been facing a lot of criticism. Industry has claimed that it has led to several operational difficulties for the industry including export oriented units and has further resulted into hampering of routine functioning.

The state government had projected a collection of Rs 960 crore from entry tax for 2008-09 which is adjustable against VAT(Value Added Tax) only. “With the decision of withdrawing entry tax in couple of items, the government would lose revenue of Rs. 150 crore,”

A Venuprasad said after holding a meeting with representatives of PHD Chamber.