Sweets, meat, snacks, butter,cream, gur to cost more in UP

Lucknow, Sep 6 (UNI) The Uttar Pradesh government today announced to hike trade tax by four to seven per cent on different products including sweets, meat, furniture, snacks, butter, cream,cheese, gur and fuel gas including CNG.

Now the taxes on these products would be at 12.5 per cent flat rate as being charged by the other neighbouring states who are under VAT regime.

The decision to hike the taxes was taken by the state cabinet meeting chaired by Chief Minister Mayawati yesterday.

Briefing mediapersons, principal secretary to chief minister Shailesh Krishna said here that the government would earn an additional revenue of Rs 66.85 crore during the remaining period of the current financial year.

The government has imposed four per cent tax on gur which was tax free till now.

The trade tax on sweet, meat, snacks and sugar made produce would be now 12.5 per cent against the existing five per cent tax.

Now the people have to pay 12.5 per cent tax on furniture, plastic furniture, spare parts, gas of refrigerator, AC, butter, cream, cheeese, fuel gas including CNG. Earlier the government was charging eight per cent tax on these products.

However, the government has decided to decrease the trade tax on railway wagon,railway engine, coaches and other similar products from existing ten per cent and one per cent development tax.

Mr Krishna said that the decision to decrease the tax was taken in order to compete with other states who are charging just four per cent under the VAT regime.

The government also approved compounding fee for cane crushers which will be 10 per cent more than the amount charged in 2006-07.

During the period between November 2006 to October 2007, the government is expected to collect a revenue of Rs 4.47 crore through compounding fee.

UNI