Sardinha Govt restores Sales Tax holidays in Goa

Sardinha Govt restores Sales Tax holidays in Goa
EXPRESS NEWS SERVICE

PANAJI, DEC 6: Goa's new Fransisco Sardinha Government on Monday decided to restore Sales Tax holidays to small, medium and large-scale industries which was earlier suspended by the Luizinho Faleiro Government.

In its first Cabinet meeting on Monday, the State Government decided to continue tax concessions till March 31, 2000. "The commitment given to the industry must be honoured, those who set up industries on the promise of such concessions should not be let down," Sardinha said.

The Faleiro government which was toppled last month by defectors had decided to scrap Sales Tax concessions in view of Goa's financial deficit. However, powerful industrialists, affected by the decision, were actively campaigning against the former chief minister.

Sardinha admitted that Goa's fiscal deficit was worrying and called for newer methods to mobilise resources. Industries which begain production by March next year will be eligible for concessions as follows; small scale units - 15 years. Medium and large units- tenyears.

Sardinha informed that his government is tightening the screws on ferro alloy units operating in the State. The state-owned Economic Development Corporation will henceforth not give any financial assistance to the units, he said.

The Chief Minister also revealed that Goa is going in for private transmission and distribution of power to facilitate rapid industrialisation. "We will appeal to the courts to grant us permission for providing more electricity connections," Sardinha said. The Panaji bench of the Mumbai High Court had banned grant of new electricity connections after a public interest petition was submitted in the court. This prevented opening of new units in the State.