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Punjab withdraws sales tax on CSD items
Our Correspondent

Patiala, August 29
The state government has decided to withdraw the sales tax on CSD items with immediate effect.

The decision was taken at a high-level meeting presided over by the state Chief Minister, Capt Amarinder Singh, here today. Besides this, various issues relating to the welfare of the serving Army personnel were also discussed.

Expressing concern over the diversion of trade to other states where the CSD items were not subject to any sales tax, the Chief Minister said the large-scale leakage of CSD items into the open market had resulted not only in loss of revenue but was also detrimental to the objective of providing these items at concessional rates.

He said the sale of cars through the CSD had shot upto 20,000 cars, for which tax exemption had been availed. Last year nearly 5,000 cars had been sold, according to Army authorities.

He further said the sales tax was imposed to check the leakage into the open market rather than to earn any revenue from the Army personnel. The Chief Minister directed the Department of Defence Services Welfare (DSW) to chalk out a scheme to plugging the leakage into the open market. It was also decided to honour the commitment of the state government to grant payment of ex-gratia to the martyrs of Kargil, Operation Rakshak and Prakram on a priority basis. He also directed the DSW to complete the war museum as a tribute to the martyrs who had laid down their lives for the country. He asked the Chief Secretary, Punjab, Mr Jai Singh Gill, to hold a separate meeting with the officers of the DSW and Finance Department to chalk out the modalities for the implementation of the welfare measures for the serving Army personnel and former servicemen.