Punjab Inc says no new burden needed, extend incentives

CHANDIGARH: Ahead of Punjab’s state budget for 2022-23, trade and industry stakeholders in the state want Punjab finance minister Harpal Singh Cheema to honour his “no new tax” assurance while offering new incentives despite poor financial health of the state.
AAP’s plans to showcase Punjab in Himachal polls and the impending stop to GST compensation has led to apprehensions that the state might choose to burden the industry in some way. Badish Jindal, national president of All Industries and Trade Forum, said, “We want existing incentives such as subsidised power and reduced fixed charges for the industry to continue.
The state government faces the burden of fulfilling its pre-poll promises and that has made us apprehensive. Centrally sponsored schemes like cluster development are not being implemented in Punjab due to inability of the state to contribute its 20% share and budget allocation should be made for it.”
Industrialists also want Infrastructure Development Cess imposed by the previous government on the number of employees working in each unit to be abolished. The notices issued to defaulters had earlier been put on hold. Proper development of industrial areas has also been a pending demand of the industry.
Sameer Jain, general secretary of Punjab Pradesh Beopar Mandal, said, “Development tax needs to be abolished immediately as it is an unnecessary burden on the business community and is against the ease of (doing) business policy. Already, we are filing several returns under GST and income tax.”
Jain demanded relief in power tariff for commercial establishments on a par with the industry. “Last year, the Centre included retail and wholesale trade under the MSMEs, but electricity rates continue to be different. At present commercial connections are being charged at Rs 10.14 per unit, which is very high,” he said.
There is also a demand for inclusion of freight subsidy in the Invest Punjab scheme to reduce the manufacturing cost of MSMEs. Amit Kapoor, president of Punjab Pradesh Beopar Mandal, added business community was hoping the budget would not have any additional financial burden in wake of the end of GST compensation from the Centre.