With the implementation of VAT Bill that reduces 10 year tax exemptions to five years, industrial units that shifted to Noida may be adversely affected.
This essentially means that units enjoying a tax break of five years will have to nonetheless, pay the tax of the remaining five years on the completion of 10 year period.
Experts are of the opinion that under the present circumstances, industries from Noida may shift to locations in Haryana or Uttrakhand, where tax rates are much lower.
It is further believed that reduced exemptions are likely to increase the state's revenue. Moreover, the illegal trade transactions between Uttar Pradesh and other states will also be checked due to uniform tax rates.
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