NewZNew (Chandigarh) : CII submits Pre-Budget Memorandum (2016 -17) to Punjab govt

Highlights:
– CII calls for a ban or stop truck unions from using intimidating and unlawful tactics against industry
– Calls for setting up of a One-Stop Industrial Safety Bureau for all safety clearances
– Transparent VAT refund system
– Re-look at high surcharges by PSPCLon Private Power Purchase
– High Speed Train Connectivity between important cities and international airports

Confederation of Indian Industry (CII) Punjab State Council submitted its Pre Budget Memorandum to state Government  for the upcoming Budget session of the state. “The key recommendations include bringing all experts on industrial safety under one Bureau; rationalizing taxation and simplifying the VAT refund process. Besides the focus is on giving impetus to the local Industry while making Government Purchases. Better connectivity of big industrial centres with international airports must also be provided,” says Sandeep Jain, Chairman, CII Punjab State Council.

Industrial Safety Bureau
In its Pre-Budget recommendations to the Punjab government, CII has suggested setting up of a comprehensive wing on Industrial safety with experts on various aspects of industrial safety and will guide & help the local Industry comply with safety norms and standards. This would also ensure that safety of workmen & management is handled with a holistic approach.

Power reforms 
In the power sector, CII has recommended that Electricity load enhancement be simplified. A policy may be made which has a mechanism whereby some percentage of enhancements over existing load of an industrial user could be permitted annually without formalities so that his or her routine expansion needs are covered.

CII has requested the government to start SMS alerts 24 to 48 hours before power cuts for maintenance work. Owing to short notice before power cuts, industrial units suffer losses as factory workers report during power cuts.

Power purchase from outside the state by individual industries in Punjab gets too costly due to the various surcharges by PSPCL. CII recommends a re-look at the various surcharges & cross subsides charged could go a long way in helping the industry get cheaper power & help it become competitive.

Tax reforms
Recommending changes in tax reforms, CII has called on the Punjab government to form a uniform set of rules, displayed at the district headquarters, as it will help the industry to understand the seniority list system and manage its cash flow. The change of rules for making a seniority list for VAT refunds of industry needs to be made more transparent at the AETC office level.

CII has recommended that the Four stage tax verification should be undertaken selectively and onus should not be on the claimant. CII has recommended that a person cannot be held responsible for the activity of any other person or his business. The claimant can prove his bonafide but not for others. Besides with computerization of the whole system, such anomalies of Tax evasion are expected to be detected at the initial stage itself without the need of four-stage verification.

CII recommends that a suitable mechanism be devised where time-bound input credit refund is given to manufacturers of exempted items or exempt these units from payment of VAT/entry tax by issuing an exemption certificate. CII has also called for effective, transparent and speedy refund of VAT. CII has urged the state government to form a mechanism where an importer can claim offset on entry tax as against the excess VAT that he has already deposited with the state government. Also the government may also consider introducing automatic transfers of refunds to the bank accounts of entrepreneurs. CII also recommends that a suitable mechanism be devised where input credit refund is given to manufacturers of exempted items.

CII has recommended to the state government to extend the Zero Tax & equivalent benefits to the existing Food Processing Industry in its policy to create a level playing field for both the existing and new units in Food processing sector.
Rationalisation road tax for industry-owned buses meant to ferry staff & workers as Rs 3 lakh per year tax is very high. This can also have a positive impact in terms of hiring women workforce especially from nearby villages & towns.

Upgarde SSI units to medium scale
CII has recommended need to upgrade SSI units to Medium scale units by giving these units special incentives. To motivate Small Scale industrial sector to upgrade to medium scale by crossing the Rs 10 crore threshold limit of investment in plant and machinery, they should be given some special incentives.
CII has called upon the state government that the units going in for major expansions be treated at par with new units and be provided Industrial Incentives at par with large units. CII also recommends that incentives granted to the existing units under expansion should be the same as granted to the new units.
CII has called for simplification of resumption of Industrial Plots through a transparent policy for hassle-free re-allotment of vacant plots

CII has urged the state government that preference be given to domestic industry while making Government Purchases.
CII requests state government to notify to all departments that while making any purchases, preference should be given to the domestic manufacturer wherein the domestic manufacturer meets all the set standards and comparison of prices quoted should made on the base price which is exclusive of taxes.

CII has called on the state government to adopt hand holding approach to facilitate better compliance with environmental norms. Government should come out with a structured manual in this regard.

CII recommends that the state Government should ban the Truck unions or issue strict directions to them which desist these unions from resorting to intimidating and unlawful tactics and action against the Industry.

CII, in its recommendations has also listed key Enablers for Reviving Industrial Growth, called upon the government that a scheme of SPVs or similar joint working groups with participation from local administration, Industry and Society be formed which can look into the task of for maintenance of Focal Points & Industrial Areas. Some special budgetary allocation linked to revenue collection from that area/town should be made to improve the existing Industrial Infrastructure in the state.

State Government must consider providing express train connectivity between big industrial cities like Ludhiana with international airports, CII recommendations include.

Boost new-age sectors
State Budget must provide incentives to new age sectors such as electric & battery-operated vehicles for engineering like bicycle manufacturing & bus body building. CII recommends; Zero VAT for Zero Emission Public Mobility Electrical Vehicles and on components used in them; exemption from registration fee of Public Mobility Electrical or Zero Emission vehicles; incentive in the form of Seed Capital and R & D expenses by manufacturing company should be provided by state Government.