Political parties should clear their agenda regarding trade & industry in Punjab

--BY Amrit Lal Jain, Sunil Mehra & Mohinder Aggarwal--

Ludhiana: Punjab Pradesh Beopar Mandal since its inception in year 1939 by late Bihari Lal Channa is watching interests of traders of Punjab. During terrorism our two state presidents late Ch Balbir Singh (Hoshiarpur) and Dev Rattan Tuli (Ferozpur) were shot dead by terrorists as they were advocating for national unity-integrity and brother-hood.
Punjab, the land that fed millions, trade and industry flourishing now it is struggling to come on its own is hard hit due to economic slowdown indifferent trade & industry policies and laws-rules governing trade & industry which is back bone of Punjab economy are framed which are detrimental to its growth and government hardly listens to the grievances of the traders and such notification are enforced with all the powers at their command.
Now elections to Lok-Sabha are going to start from 7th April 2014 and Punjab will go to polls on 30th April 2014. We appeal to all the heads of political parties contesting in Punjab to give us reply to their stand on following matters which are confronting trading community of the state.
1.    e-Trip: Excise & Taxation Department, of Government of Punjab implemented e-trip on a number of items from 01-09-2013 by adding Rule 64-A & 64—B on inter-state movement of goods above RS.50,000 to get dept. permission on VAT-12-A & VAT-12 and goods must also reach destination upto 100 kms-6 hours, 200kms-10 hours, upto 200kms within 14 hours, otherwise minimum 30 per cent penalty will be charged. It has hampered free movement of goods. PPBM wants this public notice to be withdrawn. It has choked industrial growth hit the small and tiny sector. They are unable to comply with e-trip system as infrastructure is not available with them. PPBM demands its withdrawn.
2.    Annual Processing Fee: Excise & Taxation Department of Government of Punjab introduced from year 2013 Rule 40-A in Vat 2005 that all Vat dealers pay Rs.800 per year as Annual processing fee as their returns are processed by the department. Department is not doing any favour to us. This is their duty and they get salaries for the work. It is illegitimate. It should be withdrawn.
3.    Advance Tax : Excise & Taxation department government of Punjab introduced Entry Tax in Sept’2012 on import of 26 items. Specified VAT Tax to be paid in cash at ICC barriers on entry of goods in Punjab Government started collecting of VAT tax without sale of goods. It was challenged in Punjab & Haryana High court and High court gave a stay on it. Punjab Government changed the name of entry tax to Advance Tax and issued fresh notification in Oct’2013 to pay advance tax on 30 items while importing any of the tabulated goods. It is high handedness on the part of state govt. to collect advance tax before the goods sale is made. This is against the spirit of VAT Act 2005. It should be withdrawn.
4.    Single-Stage Taxation:  Excise & Taxation Department of Government of Punjab issued notification w.e.f dated 1st March’2014 that on 140 items government will collect single-stage tax on enhanced vat rates. Items attracting 13 percent VAT plus surcharge 10% will now be charged 14.50 percent plus 10% surcharge & on items vat charged 5.50 percent  plus surcharge will be charged 6.25 percent + 10% surcharged . Single stage taxation is against the basic principles of Vat Act 2005 which is a multi stage levy. Under this regime old Punjab general sales tax system is introduced alongwith VAT regime. It is illegal. The goods shall become costly and no dealer can export goods to other states as he will not get ITC (Input Tax Credit). This system is proving to be a death knell for trade & Industry of Punjab. PPBM demands withdrawn of single-stage taxation. Country is moving towards G.S.T and Punjab Government going back to old sales tax regime.
5.    1st Feb’2014 Notification on Iron & Steel:  Vat rate reduced from 4.95% to 2.75%, but on old stock ITC will be given 2.75%, loss of 2.20%, No ITC will be allowed after First sale. Traders will give detail on sale form from which party you purchased goods on which rates. Scrap purchased with excise duty paid will levy Vat 2.75% & scrap purchased from small dealers it will attract Vat 1.10 percent. Vat rate should be same for both categories.
6.    Vat refunds:  Vat refunds of more than 506 crores are pending upto Jan’2014. There is no time limit to pay Vat refunds. Trade & Industry is suffering. VAT refund cases are delayed on Government instructions due to paucity of funds. Government should pay 12 percent interest on delayed vat refund, if it is not paid within 60 days from the date of application by a dealer.
7.    C-Form: C forms are not issued by Excise & Taxation Department resulting that trade & industry is suffering huge loss. Goods are imported with 2 percent CST rate with C form. There is no accountability on the part of Excise & Taxation department. Non availability of C forms has affected trade & industry very badly.
8.    Excise & Taxation Department on verbal advice of state government issues instructions to its each district head quarters and fix additional targets of VAT collections by each ETO. Department officials use their powers ruthlessly. Traders are harassed, penalised on flimsy grounds and heavy fines are imposed. ICC barriers are den of corruption. There is a rampant corruption in the Department. Department is a political wing of any government and through its officials they fulfill their desires. Traders are just slaves and leading a miserable life. There is no independent wing to file appeal, if dealer is not satisfied with assessment of his case. An independent tribunal with a retired High Court Judge be set up, so aggrieved party could get justice. Accountability must be fixed for officials of Excise & Taxation Department. Video surveillance teams should be deployed at ICC barriers, enforcement wings of the department and at offices of excise & taxation offices to check corruption and high handedness and rude attitude of the officials. In the year 2007 Shiv Kumar S.P Vigilance registered cases of corruption against 31 officials of excise & taxation department ranging from DETC & AETC, ETO, Inspectors, but state government never initiated any action against them. High scandals of evasion of VAT tax are due to connived between department officials & their self created bogus firms. PPBM demands there should be an independent investigation team free from the clutches of excise & taxation department.
9.    Punjab Govt Textile policy 2003 for border areas: Under this policy capital subsidy of Rs.12 crore is still not reimbursed inspite of High Court order. PPBM demands that state government should release this amount immediately and not later than 30th May 2014 with interest.
10.    Property Tax:  Punjab Government introduced property tax on 20th Sep’2013 after amending Punjab Municipal Act 1911 & Punjab Municipal Corporation Act 1976. It will be applicable from 1st April 2013. It is applicable on all types of properties, self occupied houses, rented, self occupied commercials and rented properties, lands, factories buildings etc. Due to high rates, a lot of protest, dharna, demonstrations, hartal were observed in the state. Due to high rates & resentment hardly 25 percent paid Property Tax. Real estate business is suffering, resulting till Dec’2013 the state had earned only Rs.1930 crore from stamp and registration duty. In 2012, by December Punjab had earned Rs.2205 crore, a loss of Rs.275 crore. PPBM demands that state government should revive rates of property tax on urban population on whom this burden is imposed.
11.    Position of Power/Electricity in Punjab:  With free power budget of Rs.6000 crore to agriculture sector & another 70,000 connections for tube wells to be given in pipeline with free power, burden of subsidy will increase resulting further increase in rates to domestic, industrial and commercial consumers. The industrial sector in Punjab is shrinking. State Govt. has already charging electricity duty of 13% highest in the country, besides consumers has to pay 4 paisa per unit as octroi on power. During last three year electricity rates have increased upto 34 per cent. There are many unscheduled power cuts on consumers daily. Out of 24 states of the country Punjab power rates is highest. PPBM demands that upto five acre of agriculture land holding be given free power, rest should be charged. If Punjab is power surplus, its rates should be reduced to give relief to trade-industry & household consumers.
12.    Punjab’s Industry Position :  GDP growth declined from 7 percent in 2010-11 to 5.8 percent in 2011-12 and set to fall further to 5.19 percent this year. As many as 18770 industrial units had closed down in the state during the last seven years rule of the SAD-BJP.  Punjab Government is passing through grim scenario in industrial sector.
           Zones                Closed            New Opened
Amritsar            8053                4
Ludhiana            2819                11
Gurdaspur            1864                7
Jalandhar            1850                18
Hoshiarpur            1240                3
Kapurthala            1035                1
Muktsar            768                1
Mohali                348                18
Faridkot            332                0
Nawashahr            288                1
Bathinda            5                7
Mandi Gobindgarh        111                5
This is all due to Punjab Government faulty VAT laws & Industrial Policy, corruption, non-friendly atmosphere for trade & industry growth, economy is in the doldrums and there is widespread resentment in trade & industry circle. PPBM demands state government should adopt trade-industry friendly policy, faulty VAT laws be scrapped, accountability be fixed on bureaucrats, give patience hearing to trade & industry organisations to their grievances and do not mix politics in these sectors.
13.    Punjab be granted Industrial Package:  Punjab faced terrorism for 10 years, 2 Indo-Pak wars and industrial package to H.P, Uttarakhand resulted a severe blow to trade & industry of the state. Recently the Cabinet Committee on Economic Affairs(CCEA) on 15th Jan’2014 extended the special industrial package for H.P & Uttarakhand till 2017. Punjab Border areas Amritsar, Gurdaspur & Ferozpur are under developed areas and atleast this economic industrial package be granted to these border areas. Punjab is getting a step motherly treatment. PPBM demands that all political parties be united on this matter and stress upon central government which comes in power 2014 Lok Sabha elections to grant this economic industrial package  to Punjab or atleast to its border areas.
14.    Amritsar-Patti-Ferozpur Direct Rail Link:  During Railway budget presented on 25th Feb’2013 by the then Railway Minister Pawan Bansal had announced direct Rail Link to be established between Amritsar-Ferozpur after a rail line of 25.47 km will be laid down and on 22th Nov’2013 V.K Gupta, General Manager Northern Railway had announced that above mentioned railway line work be started shortly. A distance of 240 Km will be shortened between Amritsar-Mumbai via this route.
15.    GST: PPBM demands that VAT should be replaced with National GST & Uniform rate of taxes throughout the country. It will eliminate evasion of Tax & Corruption.
16.    For the Betterment and Growth of Indo-Pak-Afghan Tarde the following measures are suggested:
(a)    Age old Rail Line between Amritsar and Lahore should be made double line from the present single line with this measure volume of Indo-Pak Trade can grow many folds.
(b)    To take care of the Drug Mafia, All Indo-Pak-Afghan trade should be conducted in Containers.
(c)    Full size truck \ containers scanners should be installed at ICP Attari urgently.
(d)    International Container Depot(ICD) should be developed alongside ICP Attari in the growth and smooth running of Indo-Pak-Afghan trade.
If these measures are put in place Amritsar can be the gateway for Direct Land Route Trade right upto Europe.
17.      Food Safety and Standard Act:  The time limit of registration under Food Safety and Standard (Licensing and Registration of Food Business) regulations 2011 which is extended upto 04-08-2014, be extended upto 31-12-2015, so that proper discussion on this bill be held and government should also set up Food Testing Laboratories in each district  throughout the country.
18.    Medicines Schedule H1 Category: Chemists all over India demands that 46 products in Schedule H1 Category, where more than 5 thousand products        are available in market. It is not possible to maintain a register on day to day basis sale and purchase. Chemists demands that maintenance of register either should be deleted and products which are of common use should be deleted for H1 category, if this rule will be fully implemented than shortage of these drugs will be there in Indian market and patient will suffer. PPBM demands that central government as well as state government to modify this category.
PPBM request all political parties and their candidates who are contesting Lok Sabha Elections in Punjab to clear their agenda regarding trade & industry and also on the points raised in this letter atleast 15 days in advance before the polling date of 30th April’2014 in Punjab.

(The Authors-Amrit Lal Jain, Sunil Mehra and Mohinder Aggarwal are president, general secretary and secretary, respectively, of Punjab Pradesh Beopar Mandal.)

(Disclaimer: The views expressed by the author/s in this article are his own and do not necessarily reflect the views of City Air News.)