Lanterns out of trade tax net in UP

In a pre-election gift to the poor and the rural people, the Uttar Pradesh government has decided to withdraw trade tax (TT) on sales of lanterns in the state.

The lantern, incidentally, is the election symbol of Union Railway Minister Lalu Prasad's Rashtriya Janata Dal, an arch rival of Samajwadi Party President Mulayam Singh Yadav.

This was decided by the Cabinet, which met here today. Earlier, 12 per cent trade tax was levied on lanterns.

Defending the tax waiver, Chief Secretary Naveen Chandra Bajpai said, ''The decision was taken keeping in mind the interests of those living below poverty line (BPL) and the rural populace, who depend on it to light their homes.'' The decision will cost the state exchequer Rs 15.75 lakh per annum.

In another decision, the Cabinet decided to reduce the interest on late payment of mandi fees from 24 per cent to 12 per cent annually. The decision was in compliance with the announcement made by the chief minister on April 28 on this. From now onwards, instead of the earlier 2 per cent interest per month, it will be charged at 1 per cent.

The Cabinet also decided to hike the compounding fee on bricks being exported out of UP to 20 per cent. The move would generate an additional revenue of Rs 12 lakh per annum to the exchequer.

The Cabinet also decided to withdraw the policy to regularise the illegal occupation of government land. This will apply to all illegal occupants, who are residing there from or before January 1992. This decision has been taken following a writ petition filed before the Allahabad High Court on the issue.

However, this decision will not affect the regularisation done by the government earlier. Bajpai said as the regularisation of illegal occupants' occupation of government land was challenged in a petition in the High Court, it was decided the policy would be scrapped.

The petitioner had said such regularisation bred criminal activities and amounted to patronage of criminals, according to Bajpai.

In another decision, the UP government decided to extend stamp duty exemption for Kashmiri migrants purchasing land or government flats in any development authority till March 31, 2007. About 300 families are expected to benefit with the extension.

In another decision for promoting the disposal of the residential properties of the Urban development authorities, which were allotted to the refugees from West Punjab (now in (Pakistan) the government has decided to give 20 per cent rebate on the payment of the cost of the flats. However only those residents who were willing to pay the entire amount in a four monthly - three installments.