Bill for one per cent cess passed in House

CHANDIGARH, Dec 22: The Punjab Vidhan Sabha today passed the Punjab Infrastructure Development Bill to provide for levying one per cent c...

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CHANDIGARH, Dec 22: The Punjab Vidhan Sabha today passed the Punjab Infrastructure Development Bill to provide for levying one per cent cess on agriculture produce except fruits, vegetables and pulses and petrol to generate about Rs. 100 crore per annum. In case of agriculture produce, the cess would be charged from the buyer.

The fund would be administered by the Punjab Infrastructure Development Board constituted under an Ordinance earlier. The infrastructure development would include creation and addition of new infrastructure facilities, replacement of existing facilities and strengthening and augmenting of existing facilities.

The Bill replaces the ordinance issued earlier.

Capt. Kanwaljit Singh, who piloted the Bill, later said the enactment would pave the way for mobilising investment from the private sector in an open, transparent and systematic manner. The state government expects to attract private investment of about Rs. 2,000 crore for the infrastructure sector during 1999-2000. As per the state government assessment, Punjab would need at least Rs. 5,000 per annum to sustain a growth rate of 7 per cent over the next five years.

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The fund would be placed with the institutions of the state government which have been designated as special purpose vehicles for infrastructure development and would raise higher amounts by way of loans and equity. These institutions, including Punjab State Industrial Development Corporation, Punjab Small Industries and Export Corporation, Punjab Health Systems Corporation, Punjab State Electricity Board and Punjab Bus Management Authority, would be authorised to go in for partnership with investors from the private sector.

The Finance Minister announced while winding up the debate on the Bill that Thein dam would start generating power from September, 1999.

The Punjab Municipal Bill, 1998, has been referred to the sub-committee. Local Bodies Minister Balramji Dass Tandon said the select committee would submit its recommendation on the 700-page Bill by March 15 next.

The House passed The Punjab Motor Spirit (Taxation of sales) Repeal Bill to hike the sales tax on motor spirit from 7 to 10 per cent to bring it at par with the neighbouring states.

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Chief Minister Parkash Singh Badal announced reduction on sales tax on packaged and branded sweets and bakery goods from eight to five per cent while moving the Punjab General Sales Tax (Second Amendment) Bill. The tax would be levied on firms with a over of Rs. 4.5 lakh and above.