Industry demands abolition of state-level taxes
In a bid to facilitate the industry which provides over three lakh jobs, the Baddi Barotiwala Nalagarh Industries Association (BBNIA) has demanded freezing of power tariff for five years, abolition of state-level taxes, besides sprucing up industrial infrastructure in its pre-budget memorandum to the state government.
Perturbed by the frequent power cuts, the association has demanded uninterrupted and quality power supply at concessional rates by freezing the power tariff hike for five years to provide price stability. Developing renewable energy parks (solar and wind) within industrial areas to supplement power needs and offering subsidies for industries adopting green energy has also been mooted. Implementation of an underground system for 11 KV lines in the industrial belt have also been demanded. The Chief Minister will present the Budget on March 17.
“Our pre-budget proposal incorporates insights from various state-level industrial associations and outlines critical areas for development, infrastructure modernisation, skill enhancement and sustainable practices to facilitate the industry,” said Rajiv Aggarwal, president, BBNIA
Abolishing state level levies like Additional Goods Tax (AGT) and Certain Goods Carried by Road tax, which hinder competitiveness and do not align with the one-nation, one-tax regime, has also been included as a key demand. “Their removal with align Himachal Pradesh with national standards of “one product-one tax norm,” said Aggarwal.
A scrap management policy has also been demanded by the investors for registration, storage and disposal of scrap materials. Despite its announcement the state government has failed to devise this policy and its unauthorised disposal often causes water and air pollution.
The association has reiterated its demand for constructing a four-lane circular road parallel to Baddi-Nalagarh National Highway from Barotiwala and ending at Nalagarh with interconnection to different industrial areas/clusters. Weekly heli taxi service between Baddi and Shimla has also found prominence in the wish list of the industry.
Creation of modern housing, improved medical facility, street lights and adequate sanitation facilities to create a cleaner BBN has also been mooted as the area presents an ugly look due to piles of garbage dumps.
The association has demanded Rs 500 crore for modernisation of existing industrial estates to develop dedicated freight corridors for smoother logistics, mass rapid transport system, creating plug-and-play industrial parks specifically designed for Micro Small and Medium Sector Enterprises (MSME) with pre-built factory sheds and essential utilities, incorporating digital infrastructure such as high-speed internet and systems to support modern manufacturing processes have also been highlighted by the association.
A state-specific MSME policy has also been demanded encompassing incentives such as concessional land allocation, tax rebates and easier access to credit besides special incentives for utilising state-sourced raw materials like herbal products and agricultural produce.
The Confederation of Indian Industry (CII), Himachal Pradesh, advocated for policy measures that enhance growth, competitiveness and ease of doing business in the state besides reforms like high cost power tariff, rationalizing freight cost and push infrastructure development to foster a conducive environment for industries to grow in the state.
“High power tariffs continue to impact industrial viability for all kinds of the industries. A lower and competitive tariff structure is essential to reduce operational costs, improve sustainability and attract new investments. Leveraging Himachal Pradesh’s abundant hydroelectric potential, a rationalised energy cost will position the state as a preferred destination for industries,” said Deepan Garg, chairman CII, Himachal Pradesh.
“The Additional Goods Tax (AGT) and the CGCR are only levied in Himachal Pradesh despite the GST implementation across the country which adds financial burdens on industries. This should be subsumed in the GST. Special emphasis should be laid on investment promotion and for attracting new investment,” stated Sanjay Suri, CII Vice Chairman.
