What is Entry Tax? Will it not make purchases of a dealer in Arunachal more costly?
A. Entry tax is a tax levied on all imports into Arunachal. It is levied on all importers, (whether dealers or consumers) so long as the value of goods imported is more than Rs. 10,000. This entry tax levied is fully VAT-able, i.e., a dealer making resale of such goods or use of such goods in his business, can claim full tax credit of entry tax paid. Thus Entry tax will not be an additional levy on the business, but on the other hand will protect the Arunachal business from the dealers of Assam, who make direct sales to consumers in Arunachal Pradesh. It gives level playing field to honest tax complying dealers.
