Tax and Economic Reforms of UP - 2 | Course for UPPSC Preparation - UPPSC (UP) PDF Download

Entertainment Tax

• Uttar Pradesh Cinemas (Regulation) Act of 1955 and its associated rules from 1951
• Uttar Pradesh Amusement and Betting Tax Act of 1979 and its related rules from 1981
• Video Display (Regulation) Rules of 1988
• Cable TV Network (Display) Rules of 1997

Administration : The administration and enforcement of these regulations and rules fall under the jurisdiction of the Entertainment Department. Following the implementation of the Goods and Services Tax (GST) system in the state on July 1, 2017, the entertainment tax has been incorporated into the GST.

Entertainment Industry in the State :

• 330 single-screen cinemas
• 60 multiplexes with 200 screens
• 21.62 lakh cable subscribers to cable operators
• 30 lakh subscribers to Direct-to-Home (DTH) services

Cinemas in Uttar Pradesh: A State of Transition & related issues :

• Operational Cinemas: Only 371 out of the 1018 cinemas in the state are currently operational.
• Multiplex Expansion: Multiplexes are experiencing rapid growth in major cities.
• Challenges in Smaller Towns: However, they encounter difficulties in establishing a presence in smaller towns.
• Lack of Incentives: The primary hindrance is the insufficient incentives provided for multiplexes to establish themselves in these areas.

Cable TV services have been in operation in the state since the fiscal year 1991-92.

Economic Reforms in Uttar Pradesh

• Centralized Business Setup Hub: The creation of a centralized establishment for efficient business setup and approvals, hastening the initiation of new businesses.

  Simplified Business Practices: Reformed processes, such as acquiring construction permits and property registration, resulting in enhanced rankings in the World Bank’s Ease of Doing Business Report.

• Development of Infrastructure: Investments in new roads, highways, and airports to facilitate business operations and attract investments.

• Ambitious Economic Growth Target: Uttar Pradesh aspires to achieve a trillion-dollar economy by 2030, fueled by confidence in the impact of these reforms.

• Enhancement of Agricultural Sector: Subsidies, crop diversification, farmers' markets, and research and development investments have increased agricultural productivity and improved farmer incomes. 

UP Achieves 2nd  Place in 2019 Ease of Doing Business Ranking

Uttar Pradesh’s Ambitious Budget for 2023-24 & Economic Reforms

• An allocation of INR 100 crore for seed funds to encourage incubators, particularly in sectors such as tourism, healthcare, education, agriculture, and energy.
• The state currently hosts 50 incubators and 7,200 startups, with INR 60 crore designated for the Information Technology and Startups Policy.

Infrastructure :

• INR 55,000 crore earmarked for various infrastructure projects, including expressways, roads, and metros, with the aim of establishing Uttar Pradesh as one of India's best-connected states.
• Allocations of INR 30,000 crore for road and bridge construction and INR 2,588 crore for state highway widening.
• INR 3,000 crore for the Chief Minister’s Urban Expansion and New City Promotion Scheme.

Metro/RRTS/Expressways :

• INR 585 crore for Kanpur Metro, INR 465 crore for Agra Metro.
• Over INR 1,300 crore allocated for the Delhi-Ghaziabad-Meerut Corridor Regional Rapid Transit System.
• INR 235 crore set aside for the new expressway projects of Jhansi and Chitrakoot.

Agriculture :

• 100 percent subsidy on electricity bills for private tubewell consumers, with a provision of INR 1,500 crore.
• INR 20 crore proposed for the Agriculture Accelerator Fund, fostering agri-tech startup incubation.

Tourism :

• Efforts to enhance tourism in Ayodhya, Varanasi, and Prayagraj.
• Plans for a Spiritual Circuit in various regions and a night safari in Kukrail, Lucknow, with INR 50 crore budgeted.
• INR 1,000 crore allocated for the 'Dharmarth Marg' project, improving roads to religious and spiritual tourist centers.

Renewable Energy :

• Uttar Pradesh's commitment to green energy with initiatives like Noida as a "solar city" and INR 15.75 crore for Ayodhya as a Model Solar City.

Ease of Doing Business :

• Uttar Pradesh's significant jump in the Ease of Doing Business Index, from 12th to 2nd place in 2022, underscores its appeal for investments.

Future Potential :

• With a youthful demographic and a substantial population share, Uttar Pradesh plays a pivotal role in India's journey toward a $5 trillion economy. The UP Budget 2023-24 fortifies the state's contribution to this ambitious goal.

Impact of Reforms

• Economic Expansion:

  Uttar Pradesh consistently outperforms the national GDP growth rate, attracting substantial investments.

• Improved Business Environment:
  Reforms have cultivated a favorable environment for businesses, spurring economic activity.

• Appealing Investment Destination:
  The state has elevated its status as an attractive investment destination, benefiting both businesses and the overall economy.