UP hikes trade tax on oil, gas, washing soaps

The Uttar Pradesh government today decided to hike trade tax on washing soaps by 4.5 percentage points, and crude oil and natural gas by 1 percentage point each.

The decision was taken in a cabinet meeting here chaired by Chief Minister Mulayam Singh Yadav.

The trade tax on washing soaps will now be 12.5 per cent, at par with the VAT regime, from the existing 8 per cent. The hike will fetch additional revenue of Rs 27.63 crore.

In 2005-06 trade tax on washing soaps generated Rs 78.59 crore. Official sources said the hike was required to make good losses suffered in comparison with what the VAT states were earning.

In another decision, the government decided to hike entry tax on crude oil and natural gas from the existing 4 per cent to 5 per cent.

Sources said the hike would not affect the common people because it would be enforced at refinery level. The 1 per cent hike will realise Rs 44.12 crore more for crude oil and Rs 12.35 crore more for natural gas in the remaining four months of the current financial year.

During 2005-06, the UP government had collected revenue of Rs 558.78 crore through entry tax on crude oil and Rs 127.34 crore on natural gas.

The government also decided to table the Taj Expressway probe report in the assembly.

The Taj Expressway Project to lay a road of international standards between Noida and Agra along the eastern banks of the Yamuna was conceived during Mayawati's regime in 2002 and the Rs 4,000 crore project was awarded to JP Industries.

UP also approved the Centre's announcement of the rate of levy rice during the current kharif season, 2006-07, applicable between October 1, 2006, and March 31, 2007.