Punjab decides to withdraw entry tax on several items

CHANDIGARH: In a major relief to the state industry, Punjab government on Wednesday announced to withdraw four per cent entry tax on several items including dyes, chemicals, cotton and as a result of it, the state government would forgo Rs 150 crore of revenue.

"We have decided to rollback the entry tax on dyes, chemicals, cotton, shoddy and worsted yarn and some of iron and steel items and a notification in this regard would be made within next seven to ten days," Punjab Excise & Taxation, Commissioner, A Venuprasad told reporters here today.

Punjab government, last year in November, imposed entry tax of four per cent on various items such as sugar, iron and steel including scrap, dyes, chemicals yarn in bid to safeguard the interests of local industry and to check the leakage of tax revenue.

Since its imposition, Punjab government has been facing a lot of criticism from across the state industry and industry has claimed that it has led to several operational difficulties for the industry including Export Oriented Units and has further resulted into hampering of routine functioning.