The Hindu Business Line : PHD Chamber for quick implementation of VAT in UP

New Delhi June 13 The PHD Chamber of Commerce and Industry has urged quick implementation of Value Added Tax (VAT) in Uttar Pradesh as part of its wish list to take the State to a higher orbit of growth.

"UP cannot afford to remain isolated from other States where VAT system is a success. The State remaining out of sync with the rest of the country will result in creating opportunities for tax evasion, unnecessary trade barriers and tax hassles affecting investment and economic pick up of the State," according to the chamber.

A related issue is the high rate of taxation on products and services. High taxes lead to avoidance of tax and even smuggling from nearby States, according to the chamber.

The public-private partnership in infrastructure development needs to be strengthened. The stress should be to take care of the emerging infrastructure needs and for generating huge resources needed for funding such projects.

Pragmatic schemes have to be rolled for tapping hydel, thermal, nuclear and other non-conventional sources of energy as the State faces tremendous power shortage, according to the chamber. More and more industrial units are opting for captive generation of power through diesel that is both expensive as well as polluting.

Agriculture needs focused attention since the percentage of people depending on farming for their livelihood is more in UP than in most of the other States, according to the chamber. Development of cold chains and farmer-retail links need more attention in this regard. Equally significant is setting up of food processing centres across the rural and semi-urban centres, which will help check the wastage of fruits and vegetables and also create employment opportunities. Micro credit should be popularised in the State especially in pockets where poverty is rampant, according to the chamber.

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