UP Gutka traders oppose state govt's move to raise VAT on tobacco products

KANPUR: With the state government's decision to raise the value added tax (VAT) on tobacco products from 12.5% to 50%, the gutka traders in Uttar Pradesh criticised the move and few are also planing to shift business to Delhi or Uttarakhand.

Moreover, the state cabinet recently rose tax upto 50%.

In the past, the tax summed upto 18.5% and now it goes up to almost 55 per cent.

There are nearly 200 pan masala manufacturers in Uttar Pradesh, out of which 10-12 big and 35-40 small makers are located in this city itself.

It is believed that shifting of gutka business will lead to unemployment in the state.