Varanasi: The eastern part of Uttar Pradesh, 'Purvanchal' must be declared as Tax Free Zone to develop the industrial sector of this region. The eastern Uttar Pradesh is certainly a hub of cottage industries which produce a large number of export oriented products and also employ nearly 42 lakh people.  These industries also contribute foreign currency worth Rs 2000 crore to the government’s treasure. But the higher tax proves to be an impediment for these industries.

The industries in Uttar Pradesh remain stagnant for the last two decades thanks to the poor basic infrastructure, unequal taxation and higher rate of excise duty and Value Added Tax.

The battered industrial sector in eastern Uttar Pradesh needs immediate tax easing. Small industries worth five crore are given tax relaxation but the problems arise due to the lackluster attitude of the government officials.

Former member of Central Silk Board Mohanlal Sarawagi says that the industries get relaxation in the excise duty and VAT in Uttarakhand due to which, they are flourishing very well there. Industries are also growing rapidly in other states thanks to the relaxation in tax slabs.

On the other hand, there are certain industries in Uttar Pradesh which has to pay entry tax along with the VAT. The textile industries have to import their basic raw materials such as cotton yarn, silk yarn, plastic yarn etc from abroad.

Today, sugarcane and textiles are the key industries in the state. No new industry has come up in eastern Uttar Pradesh in recent days, whereas the present industrial units are almost on the verge of shutdown.

The eastern Uttar Pradesh will develop if the industries are exempted to pay any kind of taxes on raw material.


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