Faridkot, June 3

The Industries and Commerce Department has issued a formal notification imposing 11 per cent entry tax on sugar coming into Punjab from other states. 

After getting the notification on June 2, the Excise and Taxation Department has started collecting this tax on the inter-state borders. With this, sugar that was priced at Rs 27 per kg some days ago was available between Rs 30 to Rs 31 per kg today in the retail market.

Of the total consumption of sugar in the state, more than 80 per cent comes from other states like Uttar Pradesh. Now, every import of sugar from UP is burdened with 11 per cent extra tax. 

Sources said that the state government imposed this huge tax on the import of sugar to protect the domestic sugar industry which is lagging behind the UP sugar industry.

The imposition of entry tax is facing strong opposition from sugar dealers in Punjab. On May 29, wholesale dealers of sugar went on a one-day strike to oppose it.