UP govt hikes taxes on electronic items, machinery

Lucknow, Nov 15 (UNI) Uttar Pradesh government today decided to hike Trade Tax (TT) on electronic appliances, including microwave and machines and their spare parts.

The TT on spares of diesel engine has also been increased.

The decision was taken in the state cabinet meeting here chaired by chief minister Mulayam Singh Yadav.

Presently, TT on electronic goods is charged at the rate of 8 per cent and 10 per cent on electrical goods.

The TT department noticed the tax was being evaded as electrical goods were sold as electronic items.

Now the tax rate has been rationalised at 10 per cent. The new tax rate will clear the confusion about imposing tax on electrical and electronic goods.

This hike will result in increase in TT on microwave ovens and other categories of electronic goods to 10 per cent from existing 8 per cent.

Besides, the CST on these items has been increased from 2 to 4 per cent. The total hike in the tax will thus be 12 per cent and fetch an additional annual revenue of Rs 25.10 crore to the state exchequer.

The state has collected a revenue of Rs 55.13 crore from the TT on electronic goods during 2005-06.

Meanwhile, with the hike in the tax on machinery and machinery spare parts has been hiked from 8 to 9 per cent. The government will earn an additional revenue of Rs 7.77 crore annually.

UNI MB VS AS DKS RK1720