Chhattisgarh state budget which was announced on 8 Feb, 2014 has given steel industry many reasons to cheers. Government had offered sops for small & medium enterprises for reviving from the crises which it had been facing due to economic slowdown.
The continuous economic recession has adversely affected the growth prospects of local industries, particularly small & medium scale Iron and Steel Industries in the state. Keeping this aspect, Hon’ble Raman Singh has proposed a series of tax reliefs for the local & cottage industries to revive them from recession in the budget estimates, which will be applicable w.e.f 1 April, 2014.
State accounts for highest steel production by secondary sector, which accounts for 190 rolling mills, 100 Sponge iron units and over 150 mini steel plants.
Highlight of budget pertain to steel sector
- CST reduced from 2% to 1% on goods manufactured by small & medium steel industries.
- Entry tax exempted on Iron ore Pellet and Billet on interstate purchase by small & medium steel industries.
- VAT reduced from 5% to 2% on Pig Iron, Scrap, Iron ore Pellet and Ferro Alloys; when purchased as raw material by Iron & steel industry against declaration.
- Entry Tax reduced 6% to 1% on Coking Coal imported by Bhilai Steel Plant.
- Entry Tax shall be 1% on market value as notified on raw material excavated from captive mines.
- Entry Tax reduced from 3% to 1% in Bauxite.
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