Punjab Fiscal Incentives Industrial Promotion Policy, 2013 FISCAL INCENTIVES 1 Department of Industries and Commerce, Government of Punjab

Contents Punjab Fiscal Incentives Introduction 2.Incentives for Manufacturing Sector Units. 3.Incentives for Integrated Textile Units. 4.Incentives for Agro / Food processing Industries 5.Incentives for Electronic Hardware and IT industry 6.Way forward

1. Introduction Punjab Fiscal Incentives Economic Snapshot –% Distribution of GSDP

1. Introduction Punjab Fiscal Incentives Fiscal Incentives will :- ►Enable Secondary and Tertiary sector contribution in CAGR. ►Enhance the industrial contribution toward state CAGR (95% of the total industrial units are small and medium category) ►Over all development of State by providing incentives in zones Less developed zone/ Areas will have – More Incentives More Developed zones/ Areas will have – Less incentives.

1. Introduction Punjab Fiscal Incentives Liberal incentives for all sectors ►Manufacturing sectors ►Integrated Textile units ►Agro and Food Processing sectors ►Electronic Hardware and Information Technology sectors

2. Incentives for Manufacturing Sectors Punjab Fiscal Incentives Zone I Fazilka, Ferozepur, Tarn Taran, Amritsar, Gurdaspur, Pathankot, Hoshiarpur, Sangrur, Barnala, Mansa, Bathinda, Sri Muktsar Sahib and Faridkot. All approved Industrial Parks, Industrial Focal Points and Industrial Estates in all districts of the State. Zone II Patiala, Fatehgarh Sahib, Ludhiana, Moga, Jalandhar, Kapurthala, Shaheed Bhagat Singh Nagar (Nawanshahr), Rupnagar and Ajitgarh(Mohali).

2. Incentives for Manufacturing Sectors Punjab Fiscal Incentives Eligible AreaFCI Rs. 1.0cr to Rs. 10cr FCI above Rs.10cr to below Rs. 25cr FCI Rs.25cr to below Rs. 100cr FCI Rs.100cr to below Rs. 500cr FCI Rs.500cr and above EDSDPT Zone I 50%VAT+ 75% CST (*only in IFPs.) 50% VAT+ 75% CST 60% VAT +75% CST 70%VAT +75%CST 80%VAT +75%CST 100% Maximum cumulative quantum of incentive 50% of FCI 60% of FCI 70% of FCI80% of FCI100% of FCI N.A. Zone II Nil25% VAT+ 50% CST 30% VAT+ 50% CST 35% VAT+ 50% CST 40% VAT+ 50% CST 50% Maximum cumulative quantum of incentive Nil25% of FCI 30% of FCI 35% of FCI40% of FCI50% of FCI N.A. Eligibility from date of application in 7 Yr8Yr10Yr11Yr13Yr

3. Incentives for Integrated Textile Units. Punjab Fiscal Incentives  Retention of VAT and CST  Electricity Duty Incentive  Stamp duty Incentive  Property Tax Incentive  Market Fee/ Rural Development Fund/ Infrastructure Development Cess Incentive

Punjab Fiscal Incentives ►Retention of VAT & CST Incentives ►Electricity Duty Incentive ►Stamp Duty Incentive ►Property Tax Incentive ►Mandi Fee, RDF, ID Cess Incentives ►Purchase Tax incentive on Wheat & Milk No purchase tax will be levied on wheat and milk purchased & processed within the State. 4. Incentives for Agro / Food Processing Industries

Punjab Fiscal Incentives (ii)Large Scale Industry ( Investment above Rs 10 Cr & Loan from FI/Bank) ► Retention of VAT & CST Incentives ►Electricity Duty Incentive ►Stamp Duty Incentive ►Property Tax Incentive ►Mandi Fee, RDF, ID Cess Incentive ►Purchase Tax incentive on Wheat & Milk ►No VAT/Entry tax will be charged on farm equipment 4. Incentives for Agro / Food processing Industries

Punjab Fiscal Incentives i.IT/ ITeS/Knowledge Industry ►VAT incentives ►Power related Incentives ►Stamp duty Incentives ►Property Tax Incentives ►Exemption from PPCB ►Exemption from inspection under labour laws ►Exemption from PAPRA ►Incentives related to Housing and Urban Development. 5. Incentives for Electronic Hardware and Information Technology units

Punjab Fiscal Incentives ii. Electronic Hardware manufacturing industry ►VAT incentives ►Power related Incentives ►Stamp duty Incentives ►Property Tax Incentives ►Exemption from PPCB ►Exemption from inspection under labour laws ►Exemption from PAPRA ►Incentives related to Housing and Urban Development. 5. Incentives for Electronic Hardware and IT industry

Punjab Fiscal Incentives ii.Electronic Hardware manufacturing industry ►Preferential Market Access (PMA) ►Special incentive for Semi- Conductor Wafer FAB. 5. Incentives for Electronic Hardware and IT industry Contd.

Punjab Fiscal Incentives Way Forward ►Facilitation Measures:- For the ease of doing business in the state, Approval to be accorded in accordance with following major steps i.Simplify procedures and documents. ii.Transparent work flows iii.Online application and approval iv.Self attestation of documents v.Third party certification of building plans, stability, safety etc. vi.Payment gateway for online payments

Punjab Fiscal Incentives Way Forward ( contd.). Steps already taken ►PPCB : Simplified Consent Management for investors: Online consent Management with online payment facility Common application form for industry Exemption from Site clearance u/s 41 (A) of the Factories Act, 1948 for industries set up in designated/ approved areas.

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