New tax in name of `royalty' creates resentment in industry: Thapar
Due to the gazette notification issued by the Punjab government on August 24, 2022, there prevails resentment in the general industry of the state as a new tax has been introduced in the name of "royalty".
City Air News
Dec 1, 2022 11:17
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Ludhiana, December 1, 2022: Due to the gazette notification issued by the Punjab government on August 24, 2022, there prevails resentment in the general industry of the state as a new tax has been introduced in the name of "royalty".
Giving more information in this regard, Amit Thapar, Chairman, Confederation of Indian Industry (CII), Punjab, said here today that according to the notification, the royalty rate of ordinary clay and ordinary earth is fixed at Rs.2 per cubic feet for use in construction of Commercial Infrastructure Projects.
He said that citing the said notification, the employees of the Mining Department have started going to all the factories under construction in Ludhiana and other districts and verbally asking them to pay royalty, otherwise they would be challaned.. But, so far no written notice has been issued to any factory owner in this regard.
Thapar said that on being asked by the general industry, the employees of the Mining Department say that they (industry) should certify themselves and pay royalty, which does not seem logical at all. Whereas it should be that if royalty is to be imposed, it should be imposed on the seller instead of the buyer.
He said that the general industry already has to coordinate with about ten departments and after the new gazette notification, now the mining department has also been added, which is not justified at all. Due to this, the general industry will have to face more problems whereas the government's policy should be "Ease of Doing Business" towards the industries.
He said that when he contacted the officials of the Mining Department in this regard, they admitted that the commercial infrastructure project has been written in the notification but not the industry. A clarification will be issued soon in this regard. But, the industry has to pay royalty.
Thapar has also taken up this matter verbally with the Secretary, Industries Department, Punjab who has assured that the General Industry will not be harassed by the employees of the Mining Department. Thapar also raised the demand for non-inclusion of general industry in the notification.
Thapar said that soon a written memorandum will be given to the concerned higher authorities in this regard.
