Madhya Pradesh government in today’s budget session has reduced the Re-bar entry tax to 2% from 5%.
Mr. Jayant Malaya, Finance Minister of M.P Government in today’s budget session reduced the Re-bar entry tax to 2% from earlier 5% with immediate effect.
Chhattisgarh, which is departed from M.P in 2001, has more than 4 MnT pa installed capacity of Re-bar as compared to M.P’s 0.6 MnT pa installed capacity. Chhattisgarh on an average supplies 30-40% of its Re-bar production to Madhya Pradesh. The entry tax reduction will surely increase the benefits of C.G manufacturers for long terms, who especially supplies Ingot to TMT manufacturers in Indore. Along with it, other neighboring states like Maharashtra, Gujarat, Uttar Pradesh, Odisha etc are also going to get the benefit.
The good news is that Madhya Pradesh government proposed no new taxes in the current budget of FY15.
“In a much awaited decision, today MP government has reduced the entry tax. It will benefit the state & construction industry,” said a well-know dealer of Re-bar in Indore.
Re-bar (12 mm) Price Comparison of Raipur & M.P after New Entry Tax
|
Particular |
RPR Re-bar to deliver M.P |
RPR Re-bar to deliver M.P |
M.P Re-bar (12 mm) |
|
Entry Tax |
5% |
2% |
Domestic N/A |
|
Raipur Ex-Work (basic) |
36,000 |
36,000 |
40,000 |
|
Excise Duty 12.36% |
4,450 |
4,450 |
4,944 |
|
Loading |
210 |
210 |
210 |
|
CST@2% & VAT@5% |
813 |
813 |
2,258 |
|
Freight |
1,900 |
1,900 |
– |
|
Misc Charges |
300 |
300 |
– |
|
Entry Tax |
2,074 |
829 |
– |
|
FOR M.P (Indore) |
45,746 |
44,502 |
47,412 |
|
Difference due to New Entry Tax |
1,244 |
– |
|
|
Difference with Domestic Re-bar Price |
2,909 |
– |
|
Note: Prices (in INR/MT) for reference purpose only
# M.P Re-bar price considered for Indore
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