Starting from the first of October, factories involved in the production of betel leaf products in Uttar Pradesh will be required to provide information about the machines they have installed. In this regard, the Additional Chief Secretary of the state, Nitin Ramesh Gokarn, has issued a notification. Once this system is implemented, the State Tax Department will have access to complete information regarding betel leaf products and other tobacco-related products in factories, making tax evasion difficult.

Tax Evasion in the Betel Leaf Products Business

Among all industries in the state, companies engaged in the production of betel leaf products have the highest cases of tax evasion. Some companies have been evading taxes for an extended period by colluding with officials from the State Tax Department. After a thorough investigation of tax evasion cases conducted by companies involved in producing betel leaf products in a year, the department has devised this formula to keep a close eye on them.

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