Guwahati, Jan. 19 (IANS): Assam Finance Minister Himanta Biswa Sarma on Friday said the state government has decided to increase the limit of tax exemption for medium and large industrial units from 100 per cent to 150 per cent of the fixed capital investment while for mega units the tax exemption is proposed with a maximum ceiling of 200 per cent of fixed capital investment.
Sarma, while announcing the schemes for tax reimbursement under GST regime to eligible industrial units operating in Assam during a press conference, said that for the first time the proportionate investment in land will be included in the fixed capital investment of the new units.
The announcements came at a time when the state is going to hold a two-day-long Global Investment Summit for the first time, scheduled for February 3 and 4.
“Assam is going to be the first state to announce such an extensive exemption policy. Tax reimbursement shall be available to the units existing on the date of transition to GST as well as to the new units set up after July 1, 2017 during GST regime but upto December 31, 2022,” he said.
“This scheme provides 100 per cent tax reimbursement every year irrespective of any capacity utilisation for 15 years, as compared to the previous industrial policy of 2014. The reducing system of tax exemptions from 100 per cent to 80 per cent and then to 50 per cent in subsequent years and linkages with capacity utilisation have been removed. It will substantially improve the working capital flow of units,” he said giving the details of the scheme.
“In order to promote tourism, 100 per cent tax reimbursement to hotels and resorts above two star and river cruise is proposed for 15 years, subject to applicable monetary ceiling. Earlier the tax exemptions was limited to room rent only but now it would extend even to food, beverages and other services,” he said, adding that special provisions have also been made for promoting power generation through the renewable source of energy by including such investments in the fixed capital investment of an existing unit.
The Minister said that the government has proposed special provisions for provisional tax reimbursement during the pendency of issue of eligibility certificates and certificates of entitlement if such certificates are not issued within a period of one year from application.
Sarma said though the government of Assam would lose approximately Rs 450 crore for existing units and even more after the Global Investment Summit, it will give confidence to the investors and businessmen. The Minister said the revenue loss will be offset by employment generation in the state.
