Rs
19,555 crore in this fiscal, which is 30%, more than the
actual collection of the previous year,” he said.
Speaking
to FE on the sidelines of an interactive session on VAT
organized by the Federation of Indian Export Organisations,
Nair said that there were some teething problems in
implementing VAT in the state but all that would be
streamlined soon. “This system is just four months old and
we are still trying to learn what kinds of problems people are
facing and trying to identify the bottlenecks. In fact, we are
also in the process of preparing an amendment to the VAT Act,
in which we are incorporating the suggestions that are being
provided to us regarding rationalization of rates,
classification of unclassified items and other important
issues,” he said.
Stating
that the revenue collection in the oil sector last year had
not been good, Nair said the state government had lost revenue
to the tune of Rs 1000 crore last year in the oil sector
largely due to the stay in the entry tax.
“The
non-oil sector meanwhile has registered a overall increase of
14 % in the last three months.”
Interacting
with the exporters, Nair said that the export sector in
general is going through bad times. “The export turnover in
UP, too, has dipped and we are rather worried about it. We are
trying to look for a solution as commercial tax provides
almost 60% of the state’s revenue, which is very important
for development and resource generation,” he opined.
Interestingly,
Nair also announced that the handmade carpet industry in UP,
which was spread across Bhadoi, Mirzapur and Varanasi
districts and was producing almost 75% of the country’s
total handmade carpets, would be exempted from 4% VAT that had
been imposed upon it since January. Speaking
to
FE, Abdul Hadi, secretary of the All India Carpet Trade Fair
Committee welcomed the exemption and said it was a step in the
right direction. “This rural-based industry spread across
eastern UP is working under extreme adversities. In fact, the
industry has started migrating to Panipat and Bikaner due to
the negligent attitude of the state government. Apart from
lack of basic infrastructure, the high handedness of the trade
tax department is killing the traditional art form in the
state. In fact, the export share of the Bhadoi carpet industry
has fallen to 50% last year from 70% in the last few years due
to this. The relief from VAT is one positive step that will go
a long way in keeping this rural industry in UP,” he added.
It
may be mentioned that Uttar Pradesh was the last state in the
country to have adhered to the VAT system. The reason behind
this was the stiff opposition by the traders and
manufacturers.
So
