Uttar Pradesh Government Launches Tax Interest Waiver Scheme 2026 for Traders

Scheme Details

Traders in Uttar Pradesh with old tax dues can now get relief under the state government's interest waiver scheme for 2026. The scheme covers eligible tax dues up to December 31, 2025, including sales tax, central sales tax, trade tax, and VAT. Applications can be submitted between October 16, 2026, and January 16, 2027.

Waiver Slabs

For principal dues up to 10 lakh rupees, the entire interest and penalty will be waived completely. For dues between 10 lakh and 1 crore rupees, traders must pay only 10 percent of the interest under the Jagran rules, while Dainik Bhaskar notes a 90 percent waiver. For amounts between 1 and 5 crores, the required payment is 25 percent, and dues above 5 crores require a 50 percent payment.

Official Meetings

State tax officials held awareness meetings for traders across different areas. In Gorakhpur, an event took place with the support of the Gorakhpur Electrical Association and Samast Vyapar Mandal. Deputy Commissioner Nripendra Singh Sengar and Assistant Commissioner Mukesh Kumar Rastogi explained the rules to local traders. In Afzalgarh, a separate meeting was held at the local dharamshala led by Sector-1 Dhampur Deputy Commissioner Sandeep Kumar Verma along with municipal trade chief Zahid Ali Khan.

Context

Tax interest waiver schemes are typically introduced by state governments to resolve long-pending legal disputes and encourage businesses to clear old liabilities. These programs help reduce court burdens while boosting state revenue collections through voluntary compliance.