Punjab Budget: Industry wants speedy tax refunds, lower taxes

Ahead of Punjab Budget 2014-15 to be presented on July 16, the state industry has pitched for speeding up tax refund process, reduction in taxes, power sector reforms and upgradation of industrial zones to boost the state's industrial growth.
"We want the state government to give top priority to speed up VAT refunds to the state industry as the long delay in receiving refunds is hurting the state's industrial sector," Managing Director of Jalandhar-based Nivia Sports, Rajesh Kharbanda told PTI.
Punjab Finance Minister Parminder Singh Dhindsa will present the state budget for 2014-15 on July 16. The state government had presented a Vote-on-Account in March this year.

The industry feels that despite the state government setting up a separate refund account, there has been an inordinate delay in tax refunds.
"As per our assessment, VAT refund to the tune of Rs 250 crore to Rs 300 crore is still pending with the department for disbursement," said Federation of Associations of Small Industries of India president Badish Jindal.
"The supply of our cotton to other states has come to a standstill as the state government is not refunding the difference between VAT (4.95 per cent) and Central Sales Tax (2 per cent) on account of inter-state sales," Punjab Cotton Ginners Association President Bhagwan Bansal alleged.

With sluggish demand hitting the bottomline of manufacturers, the state industry has also sought reduction in VAT on auto and bicycle parts to provide impetus to these key industrial verticals in the state.
"The state government should bring VAT on auto parts from 12 per cent to 4 per cent and on bicycle parts from 6 per cent to 2.5 per cent. This move will give fresh lease of life to these sectors," Jindal added.