Criticising the Punjab government for imposing four per cent entry tax on certain items including iron and steel, dyes, chemicals, yarns and sugar, industrialists today opposed the move and issued an ultimatum of 15 days to the state government for withdrawing the tax. | |
| "Imposition of entry tax is a severe injustice to the industry of the state. It has already led to at least five per cent increase in the prices of raw materials. We have given an ultimatum of 15 days to the state government to withdraw the entry tax otherwise we will adopt legal process and gherao ministers," Gursharan Singh, president of the federation of Jalandhar industrial and traders associations, told reporters. |
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| He said the Punjab industry was already getting the raw materials at a higher price because of buying them from other states and now with the addition of a new tax, the finished goods had become more expensive, posing a problem for the industrialists of the state to compete with other states. |
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| He said the government officials claimed that this tax was adjustable, so there was no use of imposing it. |
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| Earlier in April 2005, VAT was introduced in Punjab, but the refund claims of it were still pending from the last 8-9 months due to non-availability of funds in the government's treasury, he said. |
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| Rejecting the claim of state government that the introduction of this tax would stop the theft of tax, Singh said the theft of tax would be increased and revenue of state would definitely decrease. |
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| Several industrial units of Punjab have already shifted to other states and if the state government would continue to impose new and more taxes like this, the entire industry would come to a closure and this will lead to increased unemployment. |
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| "The present state government was formed eight months ago and all the promises made during elections are still pending," Ashwani Kumar Kohli, senior vice-president of the Chamber of Small Exporters, Phagwara, said adding "Our trade and industry is dissatisfied. We are continuously facing problems on one or the other issue "" increase in electricity tariff, pollution board problem, problems in getting electric connections, free electricity to some communities and increased tariff to the industry." |
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| If the government will not withdraw the entry tax within 15 days, industrialists will be forced to come on roads apart from adopting the legal process to challenge the imposition of entry tax, he threatened. |
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| Meanwhile, responding to the ultimatum issued by the industrialists on the withdrawal of entry tax, Chief Minister Parkash Singh Badal has categorically ruled out any roll back of entry tax. |
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| "Entry tax is fully rational and has been imposed by the state government after considering all the aspects of the state economy so there's no possibility of taking it back", Badal said while commenting on the 15 days ultimatum issued by the industrialists of the state with the threat of adopting legal process against the 'unjustified' entry tax. |
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