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Budget annoucements will revive Assam's economy: CII
March, 13th 2012
Industry body CII has welcomed the Assam government's Budget announcement to reduce the rate of tax under VAT and offer other concessions saying this will revive the state's economy and bring in more investments. "Positive indications for the long term have been announced on issues such as VAT rates, sectoral sops, etc. The Budget's special incentives will help revive the economy by stimulating investment," Confederation of Indian Industries North East chapter co-chair Abhijit Barooah said. He said the state level tax concession and other benefits to the industries as per the Industrial and Investment policy and special incentives to industries having mega status will attract industries to the state.

Presenting the state Budget in the Assam Assembly this morning, Chief Minister Tarun Gogoi had announced reduction in the rate of tax under VAT from 13.5 per cent to five per cent for items including alcohol, honey, glucose and coal tar. Special incentives to industries having mega status were also given to promote employment generation and benefits to consumers. "The tourism sector would also get a major fillip with major concessions offered," Barooah said. In order to encourage tourism which has "great scope in the state", Gogoi had announced exemption of luxury tax upto five per cent from room tariff of less than Rs 1,000. The CII also welcomed the proposal of setting 21 new polytechnics in the state. "The proposal to increase the intake capacity in the ITIs from 23,600 seats to 1,03,000 seats in the 12th Five Year plan period coupled with the proposal to set up a single window Skill Development and Employment Generation Authority will help in mitigating the demand supply gap for skilled manpower," Barooah said.
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