Chandigarh:
The Punjab Government on Monday said it would impose entry tax on items like diesel, cement, plywood with effect from February 5 to collect additional revenue of Rs 100 crore.
The move comes after the approval of Punjab Cabinet on report of Punjab Deputy Chief Minister Sukhbir Singh Badal and state Industry Minister Manoranjan Kalia suggesting sweeping reforms in taxation structure to mop up additional revenue worth Rs 4,000 crore.
"Entry tax has been imposed on various items in order to protect the interest of local industry and plug the leakage of revenue," a senior official of Punjab Excise and Taxation department said.
According to the notification, the department has levied entry tax on marble, plywood, DG set, ceramic tiles, cement and lubricants at a rate of 12.5 per cent each while, tax on diesel stands at 8.8 per cent, 2 per cent on furnace oil, 4 per cent each on wheat flour, rice bran and vanaspati oil.
Though, the Industry welcomed the move of entry tax imposition to protect the interests of state industry it has questioned the rationale behind levying entry tax at a time when the Centre is pushing for introduction of Goods and Service Tax (GST).
"Imposition of entry tax will lead to multilevel taxation system and will defeat the very purpose of bringing in uniformity in taxation structure through GST," a leading advocate pointed out.