Punjab exempts inputs of food processing sector from taxes

The Punjab government today announced exempting inputs of food processing sector from taxes to make the state a sectoral hub as it signed 376 pacts worth Rs 1.12 lakh crore during the second edition of the Progressive Punjab Investors Summit here.
"We have today decided not to impose any tax like purchase tax, value added tax and CST on inputs of food processing sector," Punjab Deputy Chief Minister Sukhbir Singh Badal said while addressing investors summit here today.
The announcement was applauded by ITC Chairman Y C Deveshwar who announced doubling investments in the state.
"My wife is Food Processing Minister. Why should Punjab sell only wheat. Why cannot we sell bread, biscuit. I want to make Punjab as food processing hub of India," Badal noted.

Later, Punjab Chief Minister Parkash Singh Badal said the agro-based industry would get a new lease of life with today's announcement of doing away with VAT, CST and other taxes on agro processing industry.
In a lighter vein, he asked his son Sukhbir, "whether it (exemption from taxes) is done out of threat of his wife (Harsimrat Kaur Badal who is union food processing industry minister)."

This is the second major decision taken by the SAD-BJP led state government after offering power to new investors at Rs 4.99 per unit for five years to boost new investments in the state.

"We are offering power at Rs 4.99 per unit to you for 5 years with no escalation," the Deputy CM said during his presentation, adding that his government wanted to turn the state best investment destination in the country.
Out of 376 MoUs singed with Punjab government, ITC announced doubling its investment to Rs 1,400 crore while Hero Reality and DLF committed to pump in Rs 700 crore, and Rs 9,200 crore, respectively in the state.
Companies like GVK, ICICI Bank, Fortis Healthcare, Adani, Kings College, Trident, Nahar, Walmart also signed MoUs on the occasion.
"We have signed 376 MoUs involving an investment of Rs 1.12 lakh crore during the second edition of investment summit," an official said here today.

Addressing the gathering here, Punjab Deputy Chief Minister Sukhbir Singh Badal said the government is all set to launch an integrated food park at Ludhiana, a Green Tech Valley at Phagwara and a MRO (Maintenance, Repair and Overhaul) facility adjoining the international airport at Mohali.
Giving detail of other steps taken by the government, Badal disclosed the government had tied up with various corporates to establish 2,000 skill centres to train 1.5 lakh youth in various trades and professions in the state.
He said companies involved in this task included ICICI Bank, Walmart, ITC, Tata Motors and Maruti, among others.