CST incentive for industry extended for another 5 years

Shimla: The Himachal cabinet at its meet here today decided to extend incentives of concessional rate of Central Sales Tax (CST) 1 percent for all industrial enterprises to 31st March, 2013 or till the time the CST is phased out by the Government of India.

The incentive had been allowed by the Himachal government for a ten year period in 1999 and was to come to an end on 31st March, 2009, a cabinet spokesman stated here. The cabinet meet was presided over by chief minister Prem Kumar Dhumal.

Other decisions taken by cabinet included bringing down VAT under HP Value Added Tax Act, 2005 over the Canteen Store Department (CSD) items, including IT products, and brought them at par with that of Punjab and Haryana States for the benefit of serving and ex-servicemen. Cars and computer hardware which were being levied 12.5 % VAT in these canteens has been brought down to 4%, the spokesman said

The cabinet asked the department of environment and scientific technology to identify industrial projects which were using traditional polluting manufacturing techniques and not were not observing the laid down pollution control standards.

The department has been asked to motivate such units to incorporate modern environment friendly technical devices into their projects to maintain best environmental conditions in the project areas, failing which such projects would be made liable to pay Carbon Tax for degrading the environment and the same shall be imposed after getting it examined at different levels and obtaining the consent of the Cabinet.

The cabinet also decided to give final notice to the parties who have been allotted Hydro Electric Projects and had failed to deposit the Upfront Premium on schedule.

All such companies will be required to deposit the Upfront Premium by 15th June, 2009, failing which the allotments made shall be deemed to have been canceled, the cabinet spokesman said.

The cabinet agreed to issue ‘Letter of Intent’ in favour of Gopi Bai Foundation Trust, Kota (Rajasthan); K.D.Education Trust (Registered), New Delhi; Sri Sai College of Engineering and Technology (Society), Badani (Pathankot) for setting up of Private Universities in the State.

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