Taxes In MP: The problem of high and double taxes is not going away, the production cost of industries is increasing.

Lokesh Solanki, Indore Taxes In MP. Be it a disaster situation or the government’s efforts for innovation. The industrialists and businessmen of Madhya Pradesh not only keep pace with the government but also stand shoulder to shoulder in cooperation. These industrialists and businessmen are worried that they are not getting support from public representatives on their problems and issues.

Before the Lok Sabha elections, once again the industry and business world is facing the political leadership with the same problems and issues which were there during the last elections also. According to the business world, even though Madhya Pradesh has hosted the Global Investors Summit with much fanfare in the last one and a half decade, it has not solved the problems of the local industries. Even today, Madhya Pradesh has the image of being the most expensive state for industry and business. Be it tax, fuel or electricity rates.

Association of Industries Madhya Pradesh (AIMP) President Yogesh Mehta says – 4 percent VAT is charged on PNG in Maharashtra, but in Madhya Pradesh the government is charging 13 percent VAT. While the old tax system of VAT is being implemented on fuel, many other items have come under GST. The effect is that the industrialist is paying 13 percent tax on gas but he is not getting credit for that tax paid.

Pulses and cotton mills are going to Maharashtra

Malwa has been considered the stronghold of pulse industries, whereas Nimar belt has been the stronghold of cotton industry i.e. ginning mills along with cotton production. In the past years, the number of pulse mills in Malwa-Nimar was around 250. Now the number has come down to 175. Similar is the condition of cotton industry or ginning mills. Madhya Pradesh Cotton Ginners and Traders Association had given figures that in the last years, about 200 ginning mills have closed their business and started working in Maharashtra.

The reason for this is the huge mandi tax imposed in Madhya Pradesh. Suresh Aggarwal, President of All India Dal Mill Association, says that 50 paise per hundred mandi tax is levied on agricultural produce in Gujarat and 80 paise per hundred in Maharashtra. A few months ago, mandi tax of Re 1 and 70 paise per hundred was levied in Madhya Pradesh. The government reduced it by only 50 paise in the name of relief, still one rupee and 20 paise mandi tax is being levied in Madhya Pradesh.

The state is collecting this market tax not only on the produce of the state but also on the pulses and grains imported from other states or abroad. This means that not only high but also double tax is hitting the agro-based industries. The effect of this is that the cost of pulses, rice and other products is increasing here. Madhya Pradesh’s borders are with Gujarat and Maharashtra, hence the pulses and cotton industries are shifting to the neighboring states.

The industry has been struggling for four years. Public representatives are not getting support and Mandi Tax is not being rationalized. The slogan of one country and one tax should also apply to mandi tax.

Subsidy for industries is stuck

The state government gives subsidy in various schemes for setting up new industries. There is a provision for subsidy on agriculture-based food processing, employment generation and similar basis. Even after the announcement, subsidy amount is not being released to the industries. AIMP data shows that 200 industries in Indore alone are troubled due to non-release of subsidy. This number is much more than this in Malwa-Nimar. Delayed release of subsidies is creating distrust in the state’s policies to the industries. Along with this, their operation is also becoming difficult.

Industries have no right on land, double tax on it

The industries working in the industrial areas developed by the state government are feeling cheated. Neither is the land considered theirs and on top of that they have to pay double tax. In the past several election manifestos, there was talk of free holding of land for industries in Madhya Pradesh. However, till now land has not been held free in even a single industrial area of ​​the state. Secondly, premium amount and lease rent are being taken from the industries on the land given on rent by the government. Apart from this tax of the Industries Department, local bodies, whether Municipal Corporation or Municipality, are also collecting their own tax separately. Industrialist and former AIMP president Pramod Dafriya says that Chhattisgarh government has waived double tax. MP is not listening in this direction. Similarly, the effect of industries not getting rights on land is that the value of the land of the industries is not being included in everything from bank guarantee to loan. The balance sheets of industries are becoming weak due to this. Whereas the government can not only raise revenue by giving a lump sum amount in freehold but can also find a way to restart many closed industries. The state government is also charging 0.25 percent stamp duty on loan-bank guarantees given to industries, which is much higher than other states.