GUWAHATI, Nov 10 ? The Federation of Industries and Commerce of North Eastern Region (FINER) has resented the State Government?s move to roll back the exemption of entry tax on raw materials and plant and machinery. The Government decision to roll back the exemption will kill the possibility of the State?s industrialisation, said the regional body of industries and commerce.
Describing the reaction of the industries circles of the State to the move as that of a shock, the industries and commerce body alleged that the Government move was nothing but a treatment of adding salt to injury so far as the industrial circles are concerned. It reminded the Government through a statement here today that the exemption was announced by the Chief Minister while presenting the budget in the State Assembly this year in a bid to create an environment-friendly climate in the State.
The authorities held several discussions with the industries and commerce circles in this respect. In all such discussions, assurances from the authorities were such that the industries and commerce circles were convinced that the Government was serious about exempting the entry tax on the items of above categories. The Government had also allowed import of raw materials and plant and machinery to the State under Indemnity Bond without payment of entry tax pending issue of appropriate notification, the industries and commerce body said.
But the recent directives of the State Government to the Superintendents of Taxes to collect entry taxes from the above category items, that too with retrospective effect from January 8, 2003 is a retrograde step. This needs to be reversed immediately, said the industries and commerce body.
For, it said, the move to impose entry tax with retrospective effect on the above category items would not only completely block new investment, it would also lead to flight of capital from the State.
Together with the fiscal incentives already offered by the Central Government to the investors of North Indian states, the State Government?s move to impose entry tax on the above category items, the already existent industries of the State will also face serious problems. And the closer to these industrial units will have a serious impact on the over all development scenario of the State, warned the industries and commerce body.