Four months have passed since the Haryana Government announced to end 5.25 per cent tax on yarn, but hasn’t implemented the same yet. It has been observed that the State Government had to refund more than the collected tax. According to Haryana Chamber of Commerce & Industry, in last fiscal the State Government collected tax worth Rs. 55 crore but had to refund Rs. 65 crore.
Industry experts feel that almost 5,000 firms are affected by this as they are not getting the tax benefit. On August 14, 2015 while announcing the ‘New Enterprises Policy 2015’, the Haryana Government announced tax exemption to the textile industry of Panipat and many other cluster industries.
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According to this policy tax on yarn had to be eliminated. Industrialists have approached the State Government and sent many reminders in this regard but they are being still forced to pay yarn tax.
Haryana Chamber of Commerce & Industry have also approached the State Government but it too failed to get any response from there. Haryana has good presence in the textile and apparel industry of India as Panipat, Gurgaon, Faridabad, Manesar, Sonipat, and Bahadurgarh are some of the main hubs and generate good business for the industry.