Shri Deepak Jalan, President – MCC Chamber of Commerce & Industry had a Pre-Budget discussion with the State Finance Minister, Dr. Amit Mitra. Shri Jalan offered the following suggestions to unlock revenue from the sick & closed units, expand output and employment through rationalisation of VAT Rates and enhance competitive strength of the local industries by allowing input tax credit. The following specific suggestions were given :-
1. Land-related Issues :
a. Contract Farming, without taking away ownership of farmers, is essential to make small plot size in the state viable for mechanised farming and stepping up productivity.
b. A Land Bank for every district should be set up indicating availability of plots for specific industries, power plants, roads and bridges, railway linkages etc. Details should be available on the website of WBIDC.
c. Conversion of Land from agricultural into industrial should be simplified and speeded up. BLROs and DLROs should act as Nodal Agencies for land -conversion within a reasonable time limit.
2. Raw Materials & Infrastructure :
Asansol-Durgapur region is a hub of Iron & Steel Industries. But they continue to suffer from shortage of Iron Ore , non-linkages of Coal and in-adequate supply of wagon and rakes. A National Iron Ore Policy, Coal Block linkages and wagon/rake supply on priority basis for the MSEs, as allowed to the major Steel Plants, are the only solution.
3. Urban development –
In view of 6 p.c. of road space as against 20 p.c. in Delhi , Kolkata badly needs a New Bypass Road corridor and Light Railway Transport System to facilitate the movement of population and heavy traffic.
4. Closed & Sick Units :
To speed up the revival process a ‘Special Window’ should be opened to meet the financial needs of such units by the Nationalised banks. The State Government also should offer incentives by way of exemption of all kinds of local taxes for a specific period and extension of Industrial Promotion Scheme.
5. Settlement of Pending Cases :
Pending cases are a drag on State revenues. They should be sorted out and huge revenues recovered. Shri Jalan has suggested that a suitable Settlement Scheme should be announced in the forthcoming Budget so that all pending cases under the Acts 1941, 1956, 1994 & 2003 could be settled.
6. Profession Tax – Amnesty Scheme :
Many cases are reportedly pending, involving a huge arrear of Profession tax. It needs to be sorted out to unlock the revenue and regularize the cases. Shri Jalan has suggested that an Amnesty Scheme should be introduced for lump sum payment, without interest and penalty.
7. Entry Tax :
a. Entry tax on raw-materials and inputs leads to cascading effects of the tax which in turn reduces competitive strength of the local industries. As such, it should be allowed to be set off against VAT liability on the output, as already done by several states like A.P., Bihar, Chattisgarh and Punjab .
b. All inputs brought from outside the state for the purpose of making export products should be exempted from Entry tax.
c. There is lack of clarity whether goods brought into West Bengal and subsequently exported or sold inter-State will be exempted fro Entry Tax or not. If taxed, West Bengal will lose the status of a growing Warehousing Hub for many large manufacturing companies in India . This needs clarification.
- 8. Specific issues – Shri Jalan has also pleaded for levying Stamp duty on ‘Conveyance Deeds’ only and not on ‘Agreements for sale’, reducing standard Stamp duty from 6 p.c. to 5 p.c., sorting out pending registration and mutation of properties acquired 20-30 years back, rationalisation of the classification of a number of inputs, consumable stores, thermal device, Bio-fuel, Jute felt, Chrysotile fibre roofing sheets, concrete blocks and tiles & DG sets for industry etc.