In a major decision in favor of farmers, Uttar Pradesh Chief Minister Yogi Adityanath decided to reduce the mandi tax to 1 percent from the existing 2 percent and issued guidelines in this regard, said said an official on Thursday.
With 0.5% development costs remaining, farmers and related traders will now pay a total of 1.5% mandi tax instead of the 2.5% previously for trade within the mandi premises, a declared the responsible. The decision is seen as a Diwali gift to the lakhs of farmers and agricultural organizations across the state.
In order to provide relief to farmers during the COVID-19 lockdown, 45 items of fruit and vegetables were declared exempt from the mandi tax in May. Now, only 1% of usage fees are payable on these items.
In June, the Center had separated the mandi area into mandi premises and trade area, and mandi samitis jurisdiction was limited to mandi premises and notified mandi locations.
Commercial zones have also been exempted from compulsory agricultural marketing license and mandi tax / development tax.
In view of this, Yogi Adityanath’s government made the decision to reduce the mandi tax to allow farmers and traders to use the facilities of the mandi premises and promote agricultural trade in the mandis, the official said.
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