Peeved at the recent decision of the state cabinet imposing development tax on the industries, the Indian Industries Association (IIA) has sent an appeal to the members of the Vidhan Sabha and Vidhan Parishad asking them not to get this proposal of the government passed in the House.

The appeal said that the one percent development tax would directly affect the products produced by the industries and thus would escalate their prices. The industries in Uttar Pradesh which are already bearing the brunt of several taxes in comparison to other states are shifting to other states and this additional tax would accelerate the pace of their shifting, it stated.

The increase in rate of taxes does not augment revenue but on the contrary increases tax evasion. With the simplification of the tax structure, revenue automatically increases and this could be supported by the instance of increase in revenue after reduction of rates in income tax, excise duty and export duty.

The state revenue can be increased without imposing development tax if the government focus its attention on the use of system and technology.

At present the total tax revenue collection of the government is about Rs. 15,000 crore which could be increased to 5 percent more by simplifying the tax structure and using latest technology in industries, the appeal said.

The appeal has argued the members of the Vidhan Sabha and Vidhan Parishad to rise above their parties interests and do not allow these proposals to be passed by the House as the new tax would destroy the industries and industrial climate in UP.