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Do away with multiple taxes

WHILE CHIEF Minister Shivraj Singh Chouhan and Industries Minister Babulal Gaur are claiming that the State has received investment proposals worth over Rs 50,000 crore, infrastructural facilities at the industrial areas in the State have not seen much improvements since the BJP came to power over the last two years.

india Updated: Feb 21, 2006 14:51 IST

WHILE CHIEF Minister Shivraj Singh Chouhan and Industries Minister Babulal Gaur are claiming that the State has received investment proposals worth over Rs 50,000 crore, infrastructural facilities at the industrial areas in the State have not seen much improvements since the BJP came to power over the last two years.

Besides, usual problems like multiplicity of administrative functioning, duties & taxes and shortage of power supply continue to dog the industrial scene in MP.

The State that boasts of having 815 large and medium industries with an investment of Rs 16,975 crore and 1.71 lakh SSI units, has failed to provide a conducive industrial atmosphere, feel entrepreneurs across MP.

“Our foremost demand is to increase allocation for industry, as the major sum goes into meeting administrative expenditures, and whatever is left is too little an amount to cater to the growing demands of the sector,” alleges four-time president of Industries Association, Govindpura, Shalabh Sharma.

Presidents of the industries associations of Mandideep, Pithampura, Gwalior and Jabalpur echo similar sentiments.“Due to recent initiatives of the State Government, some companies are evincing interest in MP, but it might remain a pipedream to achieve required growth rate unless tax rationalisation, infrastructure development, labour reform laws are adequately addressed,” remarked president, Association of Industries, Mandideep, D K Jain.

Whole-heartedly welcoming VAT, the industry sector has strongly emphasised on doing away with property tax, duality of taxation and local taxes imposed by local municipal bodies in the name of territorial jurisdiction.

In addition, multiplicity of administrative functioning where MPAKVN, municipalities and gram panchayats all exercise powers to gain control over revenue collection from the industrial area. The local bodies at Govindpura, Mandideep and Vidisha impose ‘export tax’ on goods sent out from their jurisdiction, causing addition burden on manufacturing unit owners. The associations have urged the government to abolish it from next fiscal.

The industry also expects to see its long-standing grievances duly redressed in the budget on better estate management, infrastructure development and other amenities through proper planning of expenditures.

It has also demanded abolition of entry tax charged on raw materials. “We don’t want exemptions. Instead, the Government should stress on ameliorating existing conditions, curtail its administrative expenditures and aim at increasing the

State’s per capita income,” says vice-president, MP Laghu Udyog Sangh, Arun Jain. Also, secretary of Mahakoshal Chamber of Commerce & Industries, Jain said imposition of taxes and duties would not help; instead government should plug its loopholes and identify the thrust areas like tourism, minerals etc that would help in contributing to state’s exchequer.

“Infrastructure need to be developed in these areas, which in turn would help to generate revenue,” he added. Similarly, the association from Gwalior has demanded setting up of production center of readymade garments in Gwalior, expediting the process of setting up of stone park and long pending IT park in the region.

Besides, right from CII, PHDCCI to FMPCCI and regional bodies – all have demanded reduction in Stamp Duty on registration of industrial properties.


“We don’t want exemptions. Instead, the Government should stress on ameliorating existing conditions and curtail its administrative expenditures”

Arun Jain,MP Laghu Udyog Sangh vice-president