Lucknow: Uttar Pradesh’s commercial tax collection for 2024-25 shows a mixed picture, with several major sectors registering declines even as growth in key areas helped stabilise overall revenue. A review of 59 business sectors assessed by the tax department found that 34 saw a drop in collections, while 25 recorded an increase.
The steepest fall came from tobacco-related products such as pan masala, khaini and chewing tobacco.
These items generated Rs 601.53 crore in tax in 2023-24, which slipped to Rs 541.51 crore in 2024-25, reflecting a decline of 9.98 per cent. Officials say this downturn is largely due to the stringent crackdown last year on the pan masala and chewing tobacco industry.
In contrast, cigarettes within the broader tobacco category posted strong growth. Tax collected from cigarettes rose from Rs 435.34 crore in 2023-24 to Rs 490.42 crore in 2024-25, an increase of 12.65 per cent. Despite this rise, the gains from cigarettes were not enough to compensate for losses in other tobacco segments.
The report also points to declines in sectors such as mobile equipment, fertilisers, construction contracts and telecommunications, which collectively weighed on overall revenue. However, growth in automobiles, fast-moving consumer goods, electrical equipment, jewellery and cigarettes helped cushion the impact.
Officials noted that while pan masala and several tobacco products continue to face pressure, vehicles and consumer goods remain strong contributors.
Growth was recorded across several significant sectors. Tax from four-wheelers and larger vehicles increased from Rs 5,686.26 crore to Rs 5,895.26 crore, a rise of 3.68 per cent. Two-wheelers saw collections move from Rs 1,933.72 crore to Rs 2,058.17 crore, up 6.44 per cent. Daily consumer goods grew from Rs 2,921.61 crore to Rs 3,080.36 crore, marking a 5.43 per cent rise. Electrical equipment and materials increased from Rs 2,229.65 crore to Rs 2,374.61 crore, up 6.50 per cent.