The industry in Punjab is expected to get some relief as the state Finance Minster today gave an indication of removal of octroi in Punjab. | |
| Punjab industry has been seeking removal of octroi as no other state in north India collects octroi. The state earns a revenue of Rs 700 crore annually from octroi. |
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| In a meeting organised by the PHD Chamber of Commerce and Industry to present a pre-budget memorandum to the finance minister the industry representatives suggested imposition of property tax in urban areas and a lumpsum tax on the entry of goods in the state to cover up the losses. |
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| The industry in Punjab has become unviable in the past few years due to acute power shortage and infrastructural bottlenecks. Due to the tax incentives offered by Himachal Pradesh many Punjab-based units are shifting base to Himachal Pradesh, a member of PHDCCI told Business Standard. |
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| President of PHDCCI (Punjab committee), Amarjit Goyal said that the industry is paying exorbitant "wheeling charges" (Re 1 per unit) for buying power from outside Punjab and it should be rationalised. |
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| The government in the past 10 years has not taken any step to increase the power supply and there is a shortfall of about 1,000 MW during the peak season and the big industries suffer the most during the power cuts. |
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| The Punjab industry has also not received the Rs 600 crore subsidy that was announced five years back. The VAT audit was an additional burden on the entrepreneurs that should be eliminated, he added. |
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| Deoiled rice bran and deoiled cakes should be exempted from VAT. |
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| The neighbouring state of Haryana has exempted these items from VAT wef January 1, 2006, says industry. As a result of concessional treatment given to deoiled rice bran/deoiled cakes by Haryana vis-à-vis Punjab, the raw material for the solvent extractors industry has started following to Haryana thereby creating shortage of raw material for the industry in Punjab, said Goyal. |
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| RS Sachdeva, co-chairman, Punjab committee said that the State Disinvestment Commission had given a report on the working of various public undertakings and had recommended appropriate steps against many loss-making units. He said that PHDCCI supported disinvestment in state PSUs and suggested to close down loss-making public enterprises. |
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| Punjab Finance Minister Surender Singla told the media that the state was likely to lose Rs 225 crore in the coming financial year on account of reduction of central sales tax from 4% to 2%. |
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| He added that the state could have earned Rs 400 crore annually from additional excise duty on sugar, tobacco but the central government deferred a decision on that. |
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| Singla refused to divulge his priorities for the forthcoming budget. This is tightrope walk for the Amarinder government as the state would be going to polls early next year. |
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