CII asks MP govt to abolish entry tax
Entry tax is levied on all material (raw as well as finished goods) being purchased or sold in the state. Tax at the rate of one per cent is being paid on all raw materials purchased and two per cent tax is being paid on finished goods.
By PTI |
BHOPAL: The Confederation of Indian Industry (CII) on Wednesday asked the Madhya Pradesh government to abolish the entry tax collection in the state, claiming that the duty has been forcing industries to lose their competitive edge.
The state needs to follow policy adopted by Maharashtra and Gujarat which have abolished octroi without introducing an entry tax, a CII delegation, led by its Western Region Chairman Shrinivas V Dempo, said in a memorandum submitted to Chief Minister Shviraj Singh Chouhan.
Entry tax is levied on all material (raw as well as finished goods) being purchased or sold in the state. Tax at the rate of one per cent is being paid on all raw materials purchased and two per cent tax is being paid on finished goods, the delegation claimed.
Entry tax itself hikes the cost to the industry by three per cent, which is totally irrational in the present global competitive business, the team added.
Industries having production facilities outside the state and selling their products here are benefited by not paying one per cent entry tax on raw material, whereas, those producing goods in MP were being penalised by being forced to pay entry tax on both raw material and finished goods, the delegation said.
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"To protect the industry within the state, it is requested to abolish entry tax on goods purchased or sold," it said.Saying that formal declaration of `industrial areas' or `industrial townships' was still pending, the CII also asked the government to bring out notification in this regard at the earliest.
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