The Goa chamber of commerce and industry has appealed to the state government to extend its scheme to exempt manufacturing units from paying value added tax for two more years.

The tax exemption scheme ended on December 5, 2013.

In its pre-budget memorandum to chief minister Manohar Parrikar, Gstated "Given the current depressed market conditions and considering that there is no other tax benefit available to the manufacturing units in the state, the Goan units are finding it difficult to compete with their counterparts in the rest of the country."

In a series of VAT-related issues, the chamber also calls for the government to notify the VAT rates on sale of flats, and also to ensure that VAT refunds are paid on time.

"It is practical experience that the sanctions of refunds are heavily delayed and no interest is being paid to the dealers on such delayed refunds," the memorandum stated.

Representing the problems of Goa's industries, the memorandum also calls for the state government to set up, through PPP model, a clean fuel-based power plant within the state to meet at least 50% of Goa's projected power demand of around 375 MW in 2016-2017.

Complaining of frequently interrupted power supply to the industries, the document also urges the government to complete laying underground power cables supplying power to industries, using high quality material.

The document also touches upon issues related to poor traffic management, and the delay in repairing the bridge over River Zuari, which has been closed to heavy traffic for decades now.

Acknowledging that Goa's manufacturing industries are facing a bleak period with no new investments in the past five to seven years, the chamber also recommends that the government forms a new investment promotion board to offer hassle-free service to prospective investors, and also to promote the IT sector in the state.