Punjab Govt. promuglates new ordinance on entry tax with retrospective effect from 06.05.2015

The Punjab Government has promuglated new ordinance namely THE PUNJAB DEVELOPMENT OF TRADE, COMMERCE AND INDUSTRIES (VALIDATION) ORDINANCE, 2015 to levy entry tax on the goods specified in the schedule apended to such ordinance. The schedule appended to such ordinance contains only one item i.e. sugar.

 However, rate of entry tax is not specified as yet which is leviable on sugar. This rate is supposed to be notified by State Government afterwards under the powers conferred by section 3 of such ordinance.The interesting thing to be noted here is that this ordinance has been made effective from 06.05.2015. 

It is worth mentioning here that entry tax on sugar was imposed earlier by way of The Punjab Development of Trade, Commerce and Industries Ordinance 2015 w.e.f. 05.05.2015. However the same was challenged before Punjab & Haryana High Court on the ground that the same was a non-compensatory tax and also on the ground that there was no schedule appended to the ordinance as defined in the definition of schedule in the ordinance, rather a schedule was seperately notified by the Principal seceretry to the Government of Punjab and on this later ground, the interim stay was granted by Punjab & Haryana High Court to the effect that no coercive measures shall be adopted for the recovery of entry tax on sugar under the said earlier ordinance.

Now, the interesting thing is, the Government has promuglated new ordinance as mentioned in the first para above and there is no such defect in the new ordinance as was in the old ordinance i.e. the schedule now is appended to the new ordinance.

After the promuglation of this new ordinance what would be the fate of the bunch of petitions pending before Punjab & Haryana High Court, challenging the validity of the earlier ordinance levying entry tax on sugar, remains to be seen.

The new ordinance can be downloaded be clicking here below:




Post a Comment