Small units urge Mayawati to implement VAT in UP

Expressing concern over the present status of industry in Uttar Pradesh, the Indian Industry Association (IIA) has written to Chief Minister Mayawati to address important issues.

A major concern of the chamber is the implementation of value-added tax (VAT).

According to the IIA, the trade tax system and process in the state needs immediate improvement, so that revenue receipts of the state increases and industries also become competitive.

Uttar Pradesh is the only state that has not implemented VAT. This is despite the fact that many states in the country have recorded an increase in their revenue receipts after introducing VAT.

The association has also urged the government to use information technology as a tool to foster industrial growth in the state. It has advocated the use of a Web-based single table system, prepared by the IIA for Uttar Pradesh in 2006 but which still needs to be inaugurated.

This system has been admired even by World Bank institutions, which have instituted an independent study on the system.

The IIA has also urged for the revival of Udyog Bandhu, which it termed a useful institution through which the issues and problems of industries can be solved at different levels.

The IIA, in its proposals, also mentioned the appointment of a commissioner and director of industries-Uttar Pradesh, a post which has been lying vacant for the last six years.

"The importance and effectiveness of this institution has been diluted over time and industry issues and problems are not getting solved for years together in this forum," the letter stated.

It urged the chief minister to chair at least one meeting of the Udyog Bandhu in three months for reviving this institution.

To give boost to Micro, Small and Medium Enterprises (MSMEs), IIA proposed that State level Udyami Mahasammelan be organized at least once a year. This is an event dedicated to the MSMEs.

As per IIA, such events provide an opportunity for the industry and the government to come closer and industrial environment in the state also improves.

The letter submitted by Tarun Kheterpal, president, IIA, also mentions the plight of the MSMEs in the state. It mentioned that these industries which provide direct employment to about 80 lac people in the state is facing tough times.

Around 70 per cent of such industries are either sick or have been closed. Through this proposal, IIA urged the government to take immediate action to revive this sector.