Cabinet Approves Tax Holiday In 123 Backward Districts

The cabinet has approved a three to five-year tax holiday for units in 123 industrially backward districts across the country with effect from October 10, 1994, said an official release.A decision to this effect was taken at a cabinet meeting presided by Prime Minister I K Gujral.

The government has also approved a proposal to undertake a legislation on multi-state cooperative societies.This would replace the Multi-State Cooperative Societies Act, 1984, which seeks to minimise government control and interference in the working of these societies in order to give them a genuine democratic character. A decision to this effect was taken by the union cabinet which met here on Tuesday

The cabinet approved a proposal to enhance the water cess structure to augment financial resources of the central and state pollution control boards, constituted under the Water (Prevention and Control of Pollution) Act, 1974.

The cabinet also gave its nod to a proposal for renaming the Udaipur airport as Maharana Pratap airport.

The union cabinet has approved a proposal for amendment of the Merchant Shipping Act, 1958 relating to minimum standards of ships. The amendment paves the way for the government to incorporate a law required for implementation of the ILO Convention No.147 which prescribes safety standards, appropriate social security measures and shipboard living arrangements covering a number of areas. This includes hours of work, minimum age for employment at sea, sickness and injury, medical examination, prevention of accidents, accomodation of crew members, food and catering, repatriation of men, freedom of association and protection of the right to organise.

The convention brings together several other ILO instruments and calls for a commitment to the implementation of basic standards in merchant shipping

Of the 123 districts, 53 districts are proposed to be placed under category A for the purpose of tax deduction available under provisions of section 80-1A of the Income Tax Act. The industrial units in these districts will be totally exempt from income-tax on profits for an initial period of five assessment years and 25 per cent (30 per cent in the case of companies) for the balance period of five years. For the remaining 70 districts in category B, industrial units located there would be allowed similar concessions for three assessment years.

The 53 category Adistricts comprise of 20 in Bihar, 11 in Uttar Pradesh (UP), 6 in West Bengal (WB), 5 each in Madhya Pradesh (MP) and Rajasthan, 2 each in Orissa and Kerala and 1 each in Gujrat and Maharashtra.

The districts placed under category A include 24 in UP, 13 each in Bihar and MP, 7 in Rajasthan, 4 in Orissa, 3 in WB , 2 each in Gujrat and Andhra Pradesh and 1 each in Karnataka and Maharashtra.

The cabinet, which met here last night under the chairmanship of the prime minister, I.K.Gujral, also approved a proposal for amendment of the draft National Cooperative Development Corporation (NCDC) Bill, 1995, relating to diversification of NCDC activities.

It also aims at facilitating more comprehensive and integrated development of agricultural and rural economy through cooperatives.