Punjab Budget (2014-15) unfriendly for industry, say industrialists

Ludhiana, July 16, 2014: Reacting to Punjab Budget for current fiscal (2014-15) presented by Finance Minister Parminder Singh Dhindsa in the Punjab Vidhan Sabha today, Gurmeet Singh Kular (President FICO) has said bicycle industry was expecting relief in shape of VAT as 90% of goods are sold out of state which attracts  2% CST. Industrialists have to apply for 4.05% refund. Industry had requested to reduce the VAT to 2% so that no refund is to be applied. This would give big relief to industry but nothing was given. Neither any provision to upgrade infrastructure has been given in budget. 

Rajiv Jain (Secretary, FICO) said that industry had requested to abolish entry tax on generator sets as Punjab is facing power shortage and the government is unable to provide uninterrupted power supply to the industry for which they have to use generator sets. This demand was also not fulfilled.

Manjinder Singh Sachdeva, General Secretary, FICO said industry was expecting technology up-gradation so that old technologies can be replaced by the new technology.  VAT on auto parts was expected to reduce from 14.30% to 6.05%. All hopes were also crushed. He remarked, overall it was unfriendly budget for the industry as no measures have been taken to facilitate the local industry.      

Rajiv Jain