Despite being an agricultural state, Haryana is finding it tough to attract the agro-based industries under tax concession scheme, according to the CAG revenue report.
The report, which was tabled in the state legislative industry last week, says information collected from 13 districts across Haryana indicates that no agro-based and electronic/software industries has made any investment, under the tax concession scheme. The reports tables finding for five years from 2006
The report fails to pin the reason why units failed to get attracted to the state despite being offered concession in sales tax but sources on condition of anonymity say lack of awareness by the pertinent department could be one of the reasons why the scheme failed to attract the industries.
To attract industries in agro-based and electronics, Haryana has allowed 250 per cent of FCI (fixed capital investment) as tax concession for agro-based units and 300 per cent of FCI to IT industries.
The information available from 13 districts states not a single unit has been set up under the scheme. Haryana has 21 districts in all. Districts evaluated in Haryana for the study include industrialised towns in Haryana (Gurgaon, Panipat).
The report also suggests that no evaluation study has been conducted by the state industry department to evaluate impact of tax concession on growth of the industries.
Interestingly, as per the report, Haryana industry and commerce department and excise and taxation department have no consolidated database for figure of benefit sanctioned/availed by units under exemption/deferment and concession of sales tax to industrial units in Haryana.
