Punjab Pradesh Beopar Mandal gives suggestions to Punjab CM Bhagwant Mann for coming budget 

Ludhiana, May 10, 2022: Punjab Pradesh Beopar Mandal (PPBM) state president Piara Lal Seth and general secretary Sunil Mehra have sent suggestions to Punjab CM Bhagwant Mann for improving ease of business in state and upliftment of trade and industry in Punjab which is in devastated condition due to recent circumstances. 

These suggestions have been sent for the upcoming budget of the state. In a representation sent to Punjab CM, the PPBM leaders have expressed confidence that chief minister will help bring back the golden era of trade and industry in Punjab. 
The suggestions submitted are as under: 

•    Punjab State Development Tax 2018 (Professional Tax):  Punjab State Development Tax 2018 also known as Professional Tax was applicable from 2018-19 on income tax assesses which is Rs.2400 annually. We would like to bring to your kind notice that the rules of the return filing and laws are very stringent and burdensome on the businessmen of the state because already the businessmen and industrialists are busy filing a lot of returns with GST and Income Tax Department. Another burden of tax on business community, procurement cost to the government and general lack of awareness among the citizens makes it contradictory to the motive of the law enacted by the government i.e., increase in revenue collection. So, we kindly request you to abolish it.

•    Relief in electricity tariff for commercial: We would like to bring to your kind attention that since 7th July 2021 Ministry of Micro, Small and Medium Enterprises has included retail and wholesale trade under the umbrella of MSME and all the benefits of MSME are extended to the retail and wholesale trade as well but the electricity tariff rates are being charged more from commercial users i.e., Rs.10.14 per unit as compare to Rs.7 per unit from the industry. Other states like Uttar Pradesh is offering commercial tariff at Rs.8.4 per unit and J&K offering commercial tariff at Rs.7.5 per unit in comparison to Punjab. We request your kindself to bring commercial rates and industrial rates at par i.e., Rs.. 5 each unit which also was the promise by many previous governments and we hope that your government will conceive those promises. 

Moreover, it is suggested that trade and industry be given certain subsidy on installing the solar power system in their premises as it is been given to domestic users. This will help boost the awareness among people and need to shift towards green energy. It is suggested that atleast 50% of the capital subsidy be provided by the government in collaboration with the central government.

•     Attractive schemes for the trade and industry:  It is very much evident that due to Covid-19 our trade and industry is facing huge crisis than ever before like labour migration and industry migration. Due to non-fulfillment of promises from previous governments had led industry to migrate to other states like Panipat (Haryana) and Delhi Sadar Bazar, Gujarat and Himachal Pradesh etc . these states are providing certain relief packages to the industries and facilities that our industrialists expect from their own state i.e., Punjab like getting land at concessional rates for industrial development, getting plots from PSIDC on installments, getting loans at from Punjab finance corporation at lower rates with flexible conditions, attractive schemes for the start-ups, tax relief for first 5 years for the start-ups and safety from the criminals and looters in industrial areas and focal points, ensuring infrastructure development in focal points etc. construction work is also effected due to pandemic and increasing cost of sand, bajri etc is also making it difficult for the industry to strive back on track. it is therefore requested to keep rates of sand at Rs. 5/- maximum and launch certain attractive schemes to attract our traders and industrialists back in the state and moreover motivate the young generation to move towards staring their own businesses with the support of the government.  

•    Certain economic packages for the state: Punjab being the border state of the country will always have fear of certain unrest from the other side’s interference which will in result effect the trade and industry. It is therefore suggested to launch certain packages like export promotions for the industry involved in cycle manufacturing, hosiery and textile industry. Our state must provide certain land for the development of semiconductors in the country as today is the era of semiconductors and other states like Tamil Nadu, Karnataka, Telangana being the first three states launching attractive schemes like land provision at lower rates, infrastructure provision, labour availability in their states to attract big conglomerates like TATA group to set up their semiconductor factory. Punjab must also launch its own schemes to attract small and large scale industry to generate employment in the state. 

•    Increasing role of government officials: the theft of electricity by kundis is general practice in the state. The concerned SDO and JE be given full accountability for such activities and this will motivate  them to work on round the clock basis to ensure that governments revenue is intact and the genuine PSPCL users are not being punished with increasing rates and power cuts. 

•    Improving infrastructure in the state: it is suggested to improve the conditions of government hospitals which is also a motive of your government and add more government hospitals to the fleet of government health care section with world class facility so that general public must not be harassed with expensive treatments from the private sector hospitals. Such cases were evident at the time of pandemic where government hospitals were not capable enough to treat he patients. We hope that your government will  improve such condition in the state where general public won’t have to demand the health care facility but it is readily available to them.

•    Controlling the worsening business environment in the state: It is very much evident that Covid-19 has effected every country and province in the world and our state is not much safe from the adverse effects of the pandemic which results in loss of Rs. 1 Lakh Crores to the industry and migration of more than 60000 industries and more than 1 lakh labour from the state. Moreover condition of Punjab in case of ease of doing business is not as expected and it is a shame where once world bank referred Manchester city of Punjab i.e., Ludhiana as one of the best city to start new businesses in India but due to poor condition of law and order in state and harassing general public in name of procedure , un-announced power cuts,  labour migration, lack of development of own power plants and dependence on PPAs have led the state on track of backwardness as compared to other states like Haryana who is planning to add its own power plant of 8400MW and Andhra Pradesh who is planning to add its 11kMw power plant. It is therefore suggested that to avoid the un-announced power cuts and help industry work on its full potential state could launch attractive schemes for both domestic and commercial and industrial users to establish green energy sources and side by side work on cutting down the PPAs and add its own power plants and develop the existing ones to work on their full capacity. We request your kindself to increase the special patrolling in industrial and focal points so that 60000 industries that have migrated from Punjab are convinced that Punjab is still the land for the development and prosperity and could return to the state alongwith opening of new industry.

•    Requirement of single window system:  In order to boost trade and industry in the state, it is requested yourself to introduce a single window system where anyone who needs to establish a new industry shall not be trapped in the jungle of departmentalization and shall be provided a facility of single window for establishing industry like applying for new GST number, applying for the land acquisition for development of the plant, applying for the loan for the business promotion etc. such a step will attract more businesses in the state and help in increasing state revenue and boost confidence among the businessmen and traders. 

•    Harassment to buyers for non-filing of GST return by the sellers:  It is a general practice that the department approaches the buyers who have genuinely purchased the goods and paid the tax amount, on failure of non-filing of GST return by the seller and reverse the input credit availed by the buyer. In this regarding Madras High Court has even passes a ruling in April 2021 where the revenue department was ordered to start recovery process of GST from the seller on failure of deposit by the seller and not reverse the input credit availed by the buyer. But still the department practices the recovery process from the buyer which is very harassing for the businessmen and industrialists and moreover the working capital of genuine buyer is also blocked due to failure of non-compliance by the seller. It is therefore requested to you to kindly raise the voice of Punjab traders and industrialists in central GST council to keep a check on the revenue department regarding this process as buyer can only see the return filing proof during GSTR2A.

•    Trade exhibitions and Food Parks: In order to compete with the world business environment and be at par with other states of the country, we need to acknowledge the need of upgradation in machinery and knowledge and for that we seek the government’s support to open trade fairs and food parks in Ludhiana and Amritsar which are the hub of the industries in the state. With upcoming international airport in Ludhiana and already functioning international airport giving rise to tourism in Amritsar, many new technologies can be shared and brought in the state. There are many sweet promises on the paper by previous governments in ease of doing business and facilitating the business environment like capital subsidy, land provision at controlled rates, small finances at lower rates amongst many, we expect from your goodself to contrive these promises.

•    Punjab Traders Welfare Board: Punjab Traders Welfare Board must be reconstituted and Punjab Pradesh Beopar Mandal (Regd.), the oldest business organization working as a bridge between government and the businessmen since 1939, must be given a chance to create conclusive atmosphere for ease of doing business.

While concluding, the representation reads “We hope that the concerns of the businessmen and industrialists will be taken into consideration before making any conclusive decision for the betterment and upliftment of the state and  business society as after all any country and province that flourishes, businessmen and industrialists are one of the major key players.”