Amar Singh panel for cut in cess, easy land deals

The Uttar Pradesh Development Council, headed by Amar Singh, has proposed a group of ministers (GoM) to take up demands for lowering taxes. The Council has also recommended measures to streamline the acquisition and transfer of land by industry.

At present, all recommendations for lowering taxes go to the tax department, which stands to lose out on collections if rates were to be lowered. A GoM, comprising ministers holding economic portfolios, would iron out the conflict.

"We want the tax structure to be simpler and cater to the needs of the companies. We wish the GoM to look at the tax-related proposals," said Atul Kumar Gupta, principal secretary, industrial development corporation of the state.

The GoM will hold a continuous dialogue with industry to address its concerns. Regarding the state's policies pertaining to land, World Bank and McKinsey & Co have pointed out that the procedures of acquiring and transferring land are cumbersome in the state.

"The land policies are critical. We are in the process of simplifying the procedure. We want to make life simpler for industry," said Gupta.

Uttar Pradesh has been losing out on investments as compared to its neighbouring states in the last few years. In 2005, Uttar Pradesh received investment proposals worth Rs 33,341 crore, which marked a healthy growth over Rs 14,249 crore in 2004, Rs 2,027 crore in 2003 and Rs 1,779 crore in 2002.

However, the bulk of these investments remains confined to the sugar industry. For instance, 80-85 per cent of the investment proposed last year was in sugar. To help out other sectors, the UP government is offering a package of incentives and concessions to investors.