TEAM HERALD
PANJIM: Pointing out to the fact that the closure of the mining industry in Goa has hit state revenue by almost Rs 1,250 crore, the Goa Chamber of Commerce and Industry (GCCI), is lobbying with the Union Finance Ministry for a “virtual special economic zone (SEZ)” status to new eco-friendly industries.
In a petition to Finance Secretary Sumit Bose, the state’s apex industrial body has also demanded duty-free import facilities for information technology, electronics and pharmaceutical industries in Goa. “Units set up in SEZs enjoy benefits like duty-free import or domestic procurement of goods for development, operation and maintenance of the SEZ units,” GCCI Chairman Narayan Bandekar said.
“Since there is opposition for setting up SEZs in Goa, we recommend that new units in Goa, especially in the IT, electronics and pharma sectors, be granted virtual SEZ status and given exemptions from Income Tax, similar to export-oriented units,” he added. SEZ policy was scrapped in Goa in 2008 following public outcry. Chief Minister Manohar Parrikar has already announced that the state will not have SEZ.
GCCI is of the opinion that given the fact that resumption of mining might not help in overcoming the financial loss at the earliest, a focus should be on boosting industrial and tourism sector.
In a representation to Bose, GCCI pointed out that of the total tax revenues of Rs. 8,700 crore contributed by Goa to the Centre; mining and related business alone is estimated to have contributed about Rs. 5,500 crore.
“With the ban on mining in the state, in the current year the central and state revenues are expected to take a hit of about Rs.4,500 crore and Rs. 1,250 crore respectively,” Bandekar said. He said that it is unlikely that mining would resume in the ensuing financial year.
As such, he said that Goa will have to look for an alternate avenue for revenue and employment generation and hence there is a need to boost the industrial and tourism sector in the State.
On the tourism front, the GCCI recommended extension of a tax holiday for tourism infrastructure projects like golf courses, theme parks, amusement parks and other projects.
Further, GCCI has also requested the finance secretary to direct the banks to be more sympathetic to the mining related borrowers like truck / barge / machinery owners by offering them some relief till the mining activity resumes again. “Collectively the exposure of entire banking sector to the people dependent on the mining is to the tune of Rs. 1,738.47 crore from 7039 accounts, out of which Rs. 441.24 crore in 2528 accounts is NPA,” the representation stated.
Since there is opposition for setting up SEZs in Goa, we recommend that new units in Goa, especially in the IT, electronics and pharma sectors, be granted virtual SEZ status and given exemptions from Income Tax
