Government announces tax reimbursement for industries

 Move aimed to attract investors ahead of Global Investors’ Summit

BY OUR STAFF REPORTER 

GUWAHATI, Jan 19: In a bid to attract investors and industrialists ahead of next month’s Global Investors’ Summit in Guwahati, the Assam government on Friday announced a scheme for tax reimbursement to existing as well as prospective industries in the State under the new GST regime.

State Fince Minister Himanta Biswa Sarma while unveiling the scheme during a press conference at Jata Bhawan in Dispur on Friday said Assam has become the first State in the country to announce such tax reimbursement policy for industries after the Centre rolled out GST regime in July 2017. 

“At the time of transition to GST regime in 2017, there were many eligible industrial units operating in the State and enjoying tax exemption/remission under the Industrial & Investment Policy of Assam, 2008 or under the policy of 2014 and the respective tax exemption schemes. Such system of tax exemption /remission is not compatible with GST regime. But the GST Council had decided that if Central or State government decides to continue the tax exemption schemes for the sake of attracting industries, they can put out the same reimbursement mechanism,” Sarma said. 

Sarma told newspersons that the existing and prospective industrial units in the State will now have pay GST dues first and the State government will later reimburse the tax amount to these industries under the scheme for tax reimbursement. The era of tax exemption/remission has been done away with under the GST regime. Under the new scheme, the State government now owes an amount of Rs 450 crore to reimburse to existing industrial units in the State.  

Assuring to start giving tax exemption to industrial units through the reimbursement mechanism at the earliest from the State government’s own coffers for the sake of ensuring industrialisation, Sarma said the government has explored various means to augment revenue. There will be tax reimbursement in case of capital investments such as purchase of lands. 

Expressing optimism about positive outcome of next month’s Global Investors’ Summit in Guwahati, Sarma said while the State government will try its best to give the best of infrastructure and facilities, including uninterrupted power supply and fast communication to prospective investors, it will also be the responsibility of people of Assam to create a conducive and positive atmosphere for investors in the State. 

“The Global Investors’ Summit will bring together all big industrialists and investors to the State. Now it will be the collective responsibility of everyone in Assam to convince and attract them to make the State their preferred investment destition,” Sarma said.