Industry about Tax Incentives offered in Spl package!

Central Government had offered Tax sops to both the Telugu States on Tuesday. Accordingly the manufacturing industries set up in the backward region of both the states will be given 15 per cent additional depreciation for the first year and 15% investment allowance (in new plant and machinery) in any of the five years.

However industry feels that this incentives will be of not much use to lure the manufacturers. Both these benefits will lower the income tax. Industries will have their own ways of reducing income tax and such benefit will not tempt them. Also new industries will not be position to worry about income tax.

Investment subsidy, Land Subsidy, Central Excise incentives, Customs incentives will benefit industries as they get to save money. So these incentives offered by the Central government are definitely not on expected lines. Earlier Himachal Pradesh and Uttarakhand have got such incentives from the Center and both the states got benefited immensely.