The Punjab government has divided the state into two zones for offering tax concessions in different categories to industrial investors, a spokesman said here on Sunday.
As per this fresh policy, in Zone 1, which includes Fazilka, Ferozepur, Tarn Taran, Amritsar, Gurdaspur, Pathankot, Hoshiarpur, Sangrur, Barnala, Mansa, Moga, Bathinda, Muktsar and Faridkot, there is 50% incentive on value-added tax (VAT) and 75% on central sales tax for eight years for entrepreneurs with Rs 10-25 crore fixed capital investment. Their maximum cumulative quantum of incentive would be 50% of the fixed capital investment, the spokesman said.
Investors in Zone 2, which includes Fatehgarh Sahib, Ludhiana, Jalandhar, Kapurthala, Nawanshahr, Rupnagar and Mohali districts, would get 25% incentive on VAT and 50% on CST for eight years for investment of Rs 10-25 crore.
Units with fixed capital investment of Rs 25-100 crore in Zone 1 would get 60% incentive on VAT and 75% on CST for 10 years and their maximum cumulative quantum of incentive would be 60% of the fixed capital investment.
For Zone 2, entrepreneurs with Rs 25-100 crore fixed capital investment would get 30% incentive on VAT and 50% on CST for 10 years, and their maximum cumulative quantum of incentive would be 30% of the fixed capital investment.
For fixed capital investment ranging from Rs 100 crore to Rs 500 crore, the tax concessions would be for 11 years, with 70% incentive on VAT and 75% on CST in Zone 1, and 35% incentive on VAT and 50% on CST in Zone 2.
The tax concessions period for fixed capital investment above Rs 500 crore would be 13 years, with 80% incentive on VAT and 75% on CST in Zone 1, and 40% incentive on VAT and 50% on CST in Zone 2.
There would also be concession on electricity duty and property tax for investors in different categories, the spokesman added.
The eligibility period for availing incentives would be determined from the date of approval of the project.