UP hikes tax on washing soap, crude oil, natural gas
Lucknow, Nov 23 (UNI) Uttar Pradesh government today decided to hike Trade Tax (TT) on washing soap by 4.5 per cent, and crude oil and natural gas by one per cent each.
The decision was taken in a state cabinet meeting here chaired by Chief Minister Mulayam Singh Yadav.
The TT on washing soap would now be 12.5 per cent at par with the VAT regime from the existing 8 per cent.
The government would collect an additional revenue of Rs 27.63 crore with this hike. In 2005-06, a total TT revenue of Rs 78.59 crore was collected on washing soap.
Sources said the hike was required to cover up the losses as the VAT regime states were charging 12.5 per cent TT.
In another decision, the government decided to hike entry tax on crude oil and natural gas from existing 4 to 5 per cent.
Sources said the hike would not affect the common people as it would be enforced at the refinery level.
The one per cent hike would add additional revenue of Rs 44.12 crore for the crude oil and Rs 12.35 crore for natural gas in the remaining four months of the current financial year.
During 2005-06, UP government had collected a revenue of Rs 558.78 crore through entry tax on crude oil and Rs 127.34 crore on natural gas.
UNI MB VS KR GC1600