Fiscal sops to investors in Punjab will continue even after Goods and Services Tax (GST) is implemented, Punjab Deputy Chief Minister Sukhbir Singh Badal said.
MOHALI: Fiscal sops to investors in Punjab will continue even after Goods and Services Tax (GST) is implemented, Punjab Deputy Chief Minister Sukhbir Singh Badal said here today.
“Whatever will be the Punjab’s share (in GST),” he said, when asked what would be the fate of tax incentives being offered by the state government to new investors who are coming here to set up projects in the state when GST is put in place.
To attract new investments, Punjab government is offering a host of tax incentives including VAT retention, exemption from stamp duty, electricity duty, property tax and central sales tax, depending upon scale of investments, for a period of seven to 13 years, as per 2013 industrial policy.
In another decision which was announced yesterday, the government has also announced to exempt food processing inputs from taxes like value added tax, CST and purchase tax.
Touted as the most comprehensive indirect tax reform since independence, GST, once rolled out, will subsume various levies like excise, service tax, sales tax, octroi, and ensure a single indirect tax regime for the entire country.
The industry had expressed apprehension about what would be the fate of incentives offered by state government during GST regime.
After existing industry condemned the state government’s move to offer cheap power to new investors, Sukhbir today said the state government will roll out a special package for existing industry by November.
“For existing industry and MSME, we will come out with a special package by November end,” Sukhbir said talking to reporters here today.
Local industry has strongly condemned the latest move of state government, offering power at cheaper rate to new investors in the state, saying it will “ruin” the present industry.
They contended that it would render them uncompetitive, thus forcing them to shut down their businesses in the state.
Punjab Cabinet had announced to offer power at less than Rs 4.99 per unit (FCA extra) to industrial units which intend to set up their units during ‘Invest Punjab’ summit or which have already installed their units to avail ‘Fiscal Incentives for Industrial Promotion (revised), 2013’
On October 26, in a meeting with local industry, Sukhbir had announced to come up with a new policy under “Make in Punjab” to encourage the local industry.