The much-awaited state industry policy is likely to be top of the agenda at the state government’s Tuesday cabinet meeting.
The government is focusing on attracting investment in sectors where manufacturers and processors can add value to their products. Sops and concessions are likely to be pared in certain sectors and to be relaxed in others.
Food processing investors are likely to be offered incentives in accordance with the Food Processing Policy, 2008. However no investor will get full exemption from Value Added Tax or entry tax, barring a few exceptions under special conditions.
“Tax exemptions, incentives and other concessions have been rationalised. Soya processing and cement are under the negative list in terms of tax exemptions but soya processors will get exemptions for a certain period, provided they add value to the products,” a well-placed government source said.
In certain conditions, tax exemptions will be offered only for a period of five years, on purchase of raw material. The policy is likely to define a special package for ailing and closed units and small-scale units. “Sick units declared by BIFR, RBI and other financial units may get exemptions from stamp duty. Further amalgamation of the Special Investment Region Act and to amend the MP Municipal Act and MP Municipal Corporation Act to end the dual taxation system in industrial areas is on the cards but due to legal problems, it is unlikely to be immediately notified,” said a source.