In a bid to provide relief to local industries ahead of lok Sabha elections, Chief Minister Raman Singh on Saturday offered slew of sops for the small and medium local industries in the annual Budget, 2014-15, for the State.
Be it iron and steel industries or cottage industries set up by self-help groups (SHGs) the Chief Minister proposed a series of tax relief policies for many. With a view to make small and medium scale iron and steel industries competitive, he proposed reduction of central sales tax from 2 per cent to 1 per cent on goods manufactured by them.
Presenting a Rs 54,710 crore tax-free Budget, Raman has also proposed waver of entry tax on “Iron Ore Pellets” and “Billets” imported by small and medium steel industries from outside State to ensure adequate supply of raw materials to them. Similarly Value Added Tax or VAT to be reduced from 5 per cent to 2 per cent on bicycle and its parts manufactured by local industries. He has proposed entry tax on “Coking Coal” imported by Bhilai Steel Plant to be reduced from 6 per cent to 1 per cent. In a boost to bauxite industries, he proposed entry tax on bauxite to be reduced from 3 per cent to 1 per cent.
In order to facilitate revival of sick industries, stamp duty of 5 per cent, being levied at present, proposed to be waived on purchase of such industries. Similarly with a view to encourage use of UPVC. as an alternative to wood for making doors and windows, VAT to be reduced on UPVC. from 14 per cent to 5 per cent. The CM has also offered sops for soybean based local industries with a view to make such industries competitive.
According to the proposal, VAT of 5 per cent on soybean used as raw material in these industries to be waived. To encourage cottage industries set up by Self -Help Groups (SHGs) in the State, the chief minister has proposed that the VAT would not to be charged on products manufactured by them. He also proposed to make tractor trolley tax free to facilitate the farmers.