Punjab: Plywood firms for curbing tax evasion
LUDHIANA: During a state-level meeting of the Punjab Plywood
Manufactures Association (PPMA) members asked Punjab Industry Minister
Anil Joshi to keep a check on tax evasion that takes place when wood
crosses outside Punjab and when it comes inside the state.
Joshi addressed the industrials at the meeting at which PPMA Chairman
Ashok Juneja explained about the losses the plywood industry in Punjab
has been suffering from. Poplar and Eucalyptus wood is transported out
of Punjab without paying 12.5 per cent VAT. To save another 2 per cent
central sales tax (CST), woods are taken from routes with no barrier
that are yamunagar and other cities of Haryana. Thus the Punjab
Plywood Industry saves 14.5 per cent of tax.
The plywood from Haryana is sold off at cheaper rates in market. This
disparity needs to be checked and also questions are raised on how
excise officials have allowed this tax evasion. The price at which
wood was being sold earlier was Rs 300 a quintal due to which farmers
had lost interest in doing agro-forestry but now saplings have been
sown in large numbers as the price has increased to Rs 1,000 per
quintal. The market is still short in supply of wood as most of wood
stock is being sent out of the state.
The members decided that the government must grant subsidies to the
plywood units. The agro-forestry provides an average income of about
Rs 1 lakh per acre and hence the government muct promote it among the
farmers. Source: Punjab Newsline Network