Last Updated: 5/21/2025 11:39:00 PM
Business Standard reported that acceding to the long standing demand of industry, Uttar Pradesh cabinet today approved reduction in the entry tax on iron and steel from 5% to 1%. This would benefit large number of iron and steel based units in the industrial hubs of the state, especially Ghaziabad , Kanpur , Agra etc. Indian Industries Association executive director Mr D S Verma said Business Standard that “The reduction in entry tax would help in lowering the manufacturing cost of iron and steel products in UP and make these more cost competitive.” Industry had been demanding relief in entry tax rate and several representations had been made at the highest level, including the chief minister, besides the state tax and industries departments. He said that “Higher rate of entry tax was adversely affecting industries, especially those units manufacturing agricultural implements.” Meanwhile, the cabinet approved the action plan for industrial development and attracting investment in UP. Udyog Bandhu, the industry interface of the state government, has been designated as the nodal agency for the purpose. The 3 tier system has been retained at Udyog Bandhu, wherein the chief minister chairs the empowered committee at state level. The cabinet also decided to reduce Value Added Tax on cigarette and cigar to 25%. In July 2012, the Akhilesh regime had hiked VAT on cigarettes from 17.5% to 50%. The cigarette traders had then decried the VAT hike claiming it would not only imperil the livelihood of over 6,00,000 cigarette traders/venders in UP, but promote smuggling from neighbouring states, where the rates were much lower. Besides, illegal cigarettes trade comprising cheap products of unbranded and duplicate brands would flood the local market. Source - Business Standard
