Industrialists from Punjab have alleged the nonchalant attitude of state government towards industries has resulted in dwindling growth for the industries of the state.
Addressing media persons here today, P D Sharma, President Apex Chamber of Commerce and Industry alleged the average growth for the last five years for all the states is 8.49 per cent where as the average for Punjab is just 5.91 per cent.
Apex Chamber Of Commerce & Industry (Punjab) claims to have support from almost all the industries of Punjab.
Raising the issue of electricity duty and octroi on power, Sharma demanded electricity duty on power should be made VATable.
“While electricity duty and octroi charges had been crucial for survival of industry it has become bane for the industry in Punjab. Electricity duty which earlier was fixed at 11 paisa per unit for about 25 years and was fixed at 5 per cent on advalorem basis since 2004-05, now it has been doubled to 10 per cent.
“The jump in electricity duty was probably made to generate extra revenue for compensating the amount to be paid to PSEB in lieu of free power. In general state governments levy duty on power to generate more power; however they keep this duty at nominal rate. So Punjab’s increase in electricity duty is the most retrograde step. Gujarat is the only state having highest electricity duty on power, but we can’t dare to compare with the Gujarat for too obvious reason,” Sharma added
Sharma demanded the state Government to make Electricity duty on power as VATable and remove the octroi charges on power. Except one or two states no other state has octroi on power.
Octroi could also be made VATable for industry.
Similarly commenting on the VAT front, Sharma said while Industrial policy clearly states VAT refund claims should be made within 60 days and any delay beyond the period attracts provision of payment of interest. As per industrialists VAT refund totalling to Rs 230 crore which has been cleared for disbursement continues to rest with the department. In case of delay in release of funds manufacturers were facing financial crunch due to uncertainty over refund payments.
