The Rs 54.710 crore Chhattisgarh budget that was presented Saturday had brought cheers for the industry even as state government focused to revive the ailing units.
“The reduction in VAT rate and entry tax is encouraging for the industry,” Manish Gupta, Chairman of Confederation of Indian Industry (CII) said. This demonstrates that the Chhattisgarh Government under the leadership of Dr Raman Singh is determined to create vibrant business environment and attract fresh investments, he said, adding that CII has always highlighted the need for rationalisation of VAT rate.
The CII welcomed the reduction of Central Sales Tax from 2% to 1% on goods manufactured by small and medium scale iron & steel industries in the state. The other notable proposal is the abolition of 5% stamp duty on purchase for rehabilitation of sick industries, Gupta added.
“The decision of abolishing Entry Tax on iron ore, pig iron and steel scrap purchased from outside the state was a welcome step,” PHD Chamber of Commerce and Industry, Chhattisgarh Committee Chairman Pradeep Tandon said. .Reduction of VAT on Steel scrap, pig iron, iron ore palate from 5% to 2% will further help in sustaining the industries.
He added that the abolition of VAT on soya industries for Self Help Group (SHG) would now make their product more competitive. Declaration of Sirpur as major centre for Buddha Tourism will encourage foreign tourism and will promote growth of Hotel industry, tour - travels business and help open new avenues of employment for the local youths, Tandon added.
Jitendra Barlota, General Secretary of the Chhattisgarh Chamber of Commerce and Industry, said that the state budget had brought a big relief for the traders and industrialists. Chhattisgarh however does not have a trade policy and they would inform the government about its relevance so that it could be implemented in the state, he added.
