statesman news service
KOLKATA, 13 JUNE: Industrialists have urged the state government to adjust or decrease the entry tax that is levied on goods.
The state government had uploaded the draft industrial policy on its website to seek suggestions. Among the various suggestions that have been submitted by the industrialists, the issue of the entry tax has been brought up the most.
State commerce and industry minister Mr Partha Chatterjee today said that most suggestions are about decreasing the
Earlier, the MCC Chamber of Commerce & Industry (formerly Merchants’ Chamber of Commerce) had submitted a memorandum to Mr Chatterjee and Mr Sougata Roy, industry advisor, suggesting the state should adjust the levy of entry tax against payment of value added tax (VAT) for industries to remain competitive.
The chamber pointed out that the imposition of the taxes has increased raw material costs, thereby leading to an increase in production cost and thereby impacted the competitive strength of all industries.
Mr Chatterjee, however, refused to disclose the suggestions related to the incentive scheme.
Apart from the government’s hands-off land acquisition policy, lack of clarity over the incentives that are to be given to industrialists has been a major hurdle in finalising the industrial policy.
Among the various incentives that had been earlier requested by the industries include a cut in stamp duty and repealing of the urban land ceiling in Bengal. However, the poor condition of the state exchequer has been cited as the major reason for the failure to offer incentives to industrialists.
Although the state commerce and industry department prepared an incentive scheme last year, it is yet to get the finance department’s nod.
In fact, Chief Minister Mamata Banerjee had repeatedly told the industrialists not to expect the concessions that they get in other states, as Bengal is “neck-deep in debt”.
Lack of clarity over the incentives that are to be given to industrialists has been a major hurdle in finalising the industrial policy