Himachal Pradesh Chief Minister, Jai Ram Thakur has urged the Central government to provide 100 per cent tax exemption to industries in the state for first five years and fifty per cent for next five years, besides making a provision of interest subvention of seven per cent for a period of seven years to promote industrial development in the hilly state.

He was speaking during the pre-budget meeting of Finance ministers of all states and Union Territories held at New Delhi on Thursday under the chairmanship of the Union Finance minister, Arun Jaitley.
The CM demanded subsidy or viability gap fund for operating flights and heli-taxi services on the pattern of north-eastern states to HP for assisting in tourism promotion as well as disaster management.

Thakur said the state had enormous possibilities for expansion of tourism activities and keeping this fact in view, there was a need to promote air traffic. He suggested that Union government should make an announcement regarding expansion of helipads of all state capitals from central budget besides making budgetary provisions at the Centre for expansion or construction of airports in hill states.He added that environment protection would be a priority of the state government.

Thakur suggested reducing the corporate tax rate up to twenty per cent for further industrial development. He said that entrepreneurs of the state were denied of the benefits of capital investment subsidy which ended in March 2017.

He added that although a special committee was constituted for preparing an extensive industrial policy for hill states yet no announcements have been made so far. He requested to continue central capital investment subsidy to the state till the new announcements are made. He also urged for restarting Freight Subsidy scheme and reimbursement of transport cost of about Rs Five crore at the rate of 75 per cent.

The HP CM requested to enhance import duty on apple as was announced in union budget 2018-19 so that interests of the horticulturists of the state were protected.

He also requested for enhancing sanctioning powers to state government under FCA ACT -1980 from 1 hectare to 5 hectare under PMGSY to speed up the works. He also requested to include areas above the population of 100 and below 250 under PMGSY to benefit more population in the state.

Thakur also urged the Centre to announce Disaster Mitigation Fund in the Union budget 2018-19 for the state as it falls under seismic zone IV and V.