Secondary steel producers today held a massive demonstration in Mandi Gobindgarh -- the steel town of Punjab, protesting against the alleged harassment at the hands of some tax officials.
The iron and steel unit owners also accused these officials of creating stumbling block in implementation of lump-sum tax on steel industry in the state.
"We are fed up with the undue harassment caused by certain officials of the Excise and Taxation department who are in the business of minting money from gullible steel industrialists here by threatening them with hefty penalties on minor issues," Small Scale Industry Association President Rajiv Sood said.
Sood strongly opposed the E-Trip system implemented last year, saying it was "hindering" smooth business activities.
"If a transporter takes time more than the stipulated time of six hours in reaching destination during intra-city movement because of unavoidable reasons, then industry is heavily fined under E-trip system," he added.
Under anti-tax evasion measure E-Trip system, any dealer or manufacturer selling these goods within the state is required to submit information regarding the transaction on the website of the department before physical movement of the goods takes place.
The industry also took on the bureaucracy for not letting lump-sum tax proposal be implemented.
"Certain higher officials are not allowing implementation of lump-sum tax proposal for iron and steel industry even though majority of the industry is in favour of it," he said.
The industry pointed out that industry delegation had met Punjab Deputy Chief Minister Sukhbir Singh Badal two months back, seeking lump-sum tax for iron and steel sector.
"Despite the fact that we have agreed for lump-sum tax, no decision has been taken so far by the state government," Sood said.
Lump-sum tax will ensure high tax collections to state the
government and contain tax evasion practice in the trade.
Under lump-sum tax proposal, the department had proposed 750 units of electricity as consumption for furnace and 250 units for rolling mill for producing 1 tonne of output in order to charge tax on actual output.
Iron and steel industry is one of the major tax paying sectors to state kitty as state government collects over Rs 550 crore in the shape of VAT from secondary steel makers.
Mandi Gobindgarh - known as the steel town of Punjab has more than 400 units including 80 induction furnaces with daily production of 12,000 MT. It caters to several industry verticals including construction industry and light engineering sector.
