CII Seeks Entry Tax In MP Abolished

Bhopal: The Confederation of Indian Industry (CII) has invigorated its demand for the elimination of entry tax in MP to make industry more competitive. The neighbouring states of Maharashtra and Gujarat have already declared the abolition of octroi in their states without introduction of any entry tax. Madhya Pradesh requires to follow this policy to make industry competitive, the apex chamber said in a memorandum of understanding submitted to the State Chief Minister Shivraj Singh Chouhan.

The state government levies entry tax on the sale and purchase of the raw and finished goods. Interestingly, entry tax is imposed at the rate of 1 per cent on all raw materials purchased and re-imposes 2 per cent on finished goods. Effectively entry tax is imposed at 3 per cent, which is totally irrational in the present global competitive business. To protect the industry within the State, the government should pay entry tax on goods purchased and sold within the state. The state government has also increased entry tax on coal from 1 per cent to 2 per cent and the CII pointed out that the coal price itself had been increased two-folds in the last 3 years.