Ranchi, Jharkhand 18 February 2015 :: Suggestions on Jharkhand Budget By Jharkhand Small Industries Association [ JSIA ]
- Expenditure Schedule: Funds are mostly spent in last 3 months. In order to ensure development work distributed throughout the year, we suggest that:
- Budgetary allocation should be done on monthly basis of at least 10% for first 10 months.
- Against the allocated fund, at least 70% should be spent every month.
- Quarterly review of utilization of fund should be undertaken.
- Make in Jharkhand: Jharkhand should take a leading role in our Prime Ministers dream project of “Make in India” as prospect of Jharkhand becoming a manufacturing state is very high. Hence, a special provision should be made in the Budget for “Make In Jharkhand” programme and it should be very aggressively undertaken.
- Fund allocation for MSME: Under fund allocation to Industry Department for incentive/subsidy, separate allocation should be made for MSME. Presently, all such benefits are clubbed with Large/Mega units, who in turn take away most of the subsidy.
- New Industrial Area: A separate allocation of Rs. 500 Crore should be made for developing Industrial Areas/Industrial corridor every district should be targeted to have at least one Industrial Area of 100 to 200 Acres of land. This is as per the provision of Jharkhand Industrial Policy 2012, clause 12.2 & 12.3
- Existing Industrial Area: In order to develop basic infrastructure for existing Industrial Areas in terms of development of Road, Drainage, Water Supply, Street light, Telecom Facility, Effluent Treatment Plant, Waste disposal system etc., a provision of Rs. 75 Crore should be made.
- Naxal affected Districts: Non Industrialisation of Naxal affected districts is aggravating it’s shape. In order to seed industrialisation in Naxal affected districts, a special package of Tax rebate will be provided for new and existing Industries which will include exemption from VAT, Income Tax, Excise duty, Service Tax and other taxes for a period of 10 years. Further model Industrial Aras with all amenities will be developed in such districts.
- Export of Non-Value added Products: A special tax should be applicable on minerals which are exported out of Jharkhand without value addition of at least 5 times.
- Mineral Identification: With the new provision of MMDR Act, it is the responsibility of State Govt. to identify mineral reserves under the soil and then auction it. A provision for identification of mineral reserves should be made in the budget.
- Commercial Taxes:
i) VAT should be exempted on renewable energy like Solar Products etc.
ii) VAT rate for materials manufactured in Jharkhand by MSME should be reduced to 3% for items with 5% VAT and 10% for items with 14% VAT. Similarly, CST should be reduced from 2% to 1%.
iii) VAT for items in adjoining states should be similar. Railway sleeper in Jharkhand attract 14% VAT whereas it is 5% in West Bengal. Industries in Jharkhand is loosing lot of order due to this.
iv) Tax rate on ATF should be low as several airlines operate from here due to this.
- Exhibition Ground: A provision should be made to develop permanent exhibition center similar to Pragati Maidan, New Delhi or Mahatma Mandir, Gandhi Nagar or Bangalore Information Exhibition Center, Bangalore at Army Camp at Mohrabadi Maidan, Ranchi with permanent canopy structures for regular showcase of Industrial products and conducting consumer exhibitions.
- Electricity Duty:
i) Electricity Duty should be payable through JUVNL instead of industry.
ii) Electricity duty on Electricity produce through generator should be waived.
- Mini Tool Room: Provision should be made for construction of a Mini Tool Room at Bokaro for Industrial Training and skill Development.
- Testing Centers: To improve the quality of product, testing facilities are required by MSME. Such testing facility is beyond the means of MSME. Steps should be taken to set up 4 world class testing facility dividing Jharkhand in 4 Sectors .
- Internet Facility: State shall make a provision to make high internet facility available in the state, especially to units who are exporting.
- Krishi Bazar Samiti: For Food Processing Industries Tax of Krishi Bazar Samiti should not be applicable.
- Border Check Post: Sales Tax Entry Gates should be installed on all Entry points of Jharkhand.