Tax modifications for the Sefai festival

The much-awaited policy for exemption from trade tax on vehicles like two-wheelers, three-wheelers and tractors, to be sold at the Sefai festival, has been cleared by the UP government.

The orders will remain valid from December 21 to 25.

However, in a major amendment in the policy for tax relief, no tax relief will be available on four-wheelers of all categories.

The Sefai Mahotosav is being organised since 2003, in the hometown of the chief minister, Mulayam Singh Yadav, in Etwah district. The Samajwadi Party led government had assumed office in August 2003.

Official sources said the relief from the trade tax would be available only on all categories of two-wheelers, three-wheelers and tractors without trolley.

Sources said four-wheelers had not been included this year as the government feared that it could provide a handy tool to the opposition party to criticise the government before the crucial assembly polls in 2007.

Sources said in 2005-06, the move to exempt luxury cars from the trade tax to the tune of Rs 50,000 was criticised at all levels. The CAG had also objected to the arbitrary relief from the trade tax allowed by the government for promoting a 'Mahotsav' in the home town of the particular politician.

In 2005-06, the state exchequer had incurred a loss of over Rs 40 crore due to the relief from the trade on the vehicles sold in the Sefai festival.This year in 2006-07, the net loss to the exchequer is estimated to range from Rs 15 crore to Rs 20 crore.