Chandigarh, September 20
In a tight spot owing to the attractive incentives given by the Centre to promote industry in Himachal Pradesh, J and K and Uttaranchal, Punjab is preparing to hit back hard on this issue.
Punjab has planned to impose entry tax on the items produced by incentive-based industries in these three states. Obviously, a lot of hue and cry will be made by these states but the authorities concerned say that there is no alternative except to impose entry tax to save industry in Punjab.
When contacted, Mr Surinder Singla, Finance Minister, said that “it was true that the state government is serious to impose entry tax on the various items coming from the states where industry was enjoying huge advantage in form of various taxes and other concessions sanctioned by the Union Government”.
Blaming the previous BJP- led Government in the Centre for ruining states like Punjab by allowing extensive incentives to neighbouring hill states to set up industry, Mr Singla said that the then Chief Minister, Mr Parkash Singh Badal, was equally responsible for causing big damage to Punjab.
He said that on the one hand the BJP led Government in the Centre kept Mr Badal in good humour by politically accommodating him on various unimportant issues, on the other hand Punjab was hit hard by the Centre by advancing massive incentives to promote industry in neighbouring hill states.
Because of this reason, industry from Punjab was migrating on a large scale to neighbouring hill states as the production cost of the industry there was far less compared to Punjab. He said Mr Badal failed to read the game played by the Centre and put Punjab on the path of devastation for all times to come. “Mr Badal did not oppose this decision of the Vajpayee Government”, he added.
He said Punjab was the biggest consumer state. Cheaper industrial goods from neighbouring states find a ready market in the state. Punjab’s own industry would not be able to compete with its counterparts in hill states where the industry was enjoying large incentives. “We have only one alternative to save Punjab’s industry, and that is to impose entry tax on the industrial items coming from these neighbouring states”, he added.
“I am working on the proposal and would discuss it with the Chief Minister, Capt Amarinder Singh, soon”, said Mr Singla. Earlier, Capt Amarinder Singh had taken up this matter with the Union Government. He had also made a personal request to the Prime Minister to do something to save Punjab by announcing similar benefits for Punjab’s industry which have been extended to the industry in hill states.
