M A I N   N E W S

Haryana sops to trade, industry
Tribune News Service

Chandigarh, January 16
The Haryana Cabinet today gave a series of concessions to the trade and industry by reducing various taxes.

However, diesel, one of the major inputs in the agriculture sector, will cost more. The sales tax on diesel has been increased from 10 per cent to 12 per cent. Its price will go up by about 36 paise per litre. So far the INLD Government had been resisting to increase the sales tax on diesel to 12 per cent, which has been fixed as the floor rate in the scheme of uniformity of tax, because Punjab charges 10 per cent tax on this commodity.

In a major concession to those industrial units which sell their production outside the state, the Cabinet reduced the Local Area Development Tax (LADT) from 4 per cent to 2 per cent. It also reduced the sales tax on industrial fuels from 10 per cent to 4 per cent, besides giving the option of paying lumpsum sales tax to halwais and plywood units.

An official spokesman said here today that the LADT would remain 4 per cent on crude oil. On petrol, high speed diesel(HSD), super light diesel oil(LDO) and LDO, it had been fixed at 8 per cent. Tax on petrol, HSD, super LDO and LDO would also be payable by information technology units, agricultural implements manufacturers, industrial units enjoying exemption from sales tax and deferment of tax, works contractors, brick-kiln owners and textile units.

Automobile units will now have to purchase petrol used in the manufacturing process by paying 12 per cent tax.

The units set up under the export-oriented unit scheme, the export processing zone scheme, the electronic hardware technology park scheme and the software technology park scheme can purchase petrol, HSD, super LDO and LDO required in the manufacturing process on payment of 4 per cent tax, which would be refunded in the case of exports. The refund facility would also be available to all units exporting their goods.

The spokesman said the halwais could pay lumpsum tax at the rate of Rs 9900 per “bhatti” per annum with effect from April 1, 2002. Those paying lumpsum tax within one month of the issue of the relevant notification would be covered under the scheme.

The brick-kilns of the capacity of more than 33 “ghoris” would pay lumpsum tax at the rate of Rs 5600 per “ghori” per annum in place of Rs 25,000 per “ghori” per annum. The brick-kilns paying lumpsum tax would not be required to use any transit challan in Form No. 38.

The Cabinet also amended the Punjab Excise Act, 1914, as applicable to Haryana to make penalties and imprisonment term more stringent to check unauthorised possession and smuggling of liquor.

The Cabinet renamed the Haryana Matching Grants for Development Works Rules, 1997, as the Haryana Matching Grants for Development Works(Amendment) Rules, 2003. Now in addition to girls schools and girls hostels, double the amount of contribution would be available for girls colleges also as a grant.

The Haryana Panchayati Raj Act, 1994, was also amended to enlarge the jurisdiction of the Zila Parishads. The amendment empowers the government to designate one or more officers as the Deputy Chief Executive Officer.

In a move, which is likely to generate a controversy, the Punjab Village Common Lands(Regulation) Act, 1961, was amended to enable a panchayat, with the prior approval of the state government, to gift “shamlat deh” land for the purpose of constructing hospitals, dispensaries or educational or “charitable institution or for such other purposes as may be approved by the state government”.