New Delhi, Aug 18 (KNN) The government earlier this week announced tax exemption to the hilly areas under the Goods and Services Tax, following which the industry in Punjab and Haryana comprising of over 70 per cent of the Micro, Small and Medium Enterprises (MSMEs) have asked for similar exemption.

Talking to KNN, Manjit Singh, Vice President of Chamber of Industrial and Commercial Undertakings (CICU) explained that the industry in the states of Punjab and Haryana have been longing for similar exemptions to attract newer investments.

Dismissing rumours that the Punjab industry is against the tax exemption to the hilly areas, Singh added that the industry here is happy with the exemption for the North-Eastern States. However, some sort of relaxation must be introduced for the Punjab and Haryana Industry as well.

Singh further informed that for a level market, it is essential that the industry with similar situations is treated in a similar manner.

Raising concern over the migration of industries from  Punjab to the regions that are having the tax holiday, Singh said that this might prove to be a drastic implication for the Punjab industry that comprises of primarily the Micro, Small and Medium Enterprises which provide employment for huge chunk of population.

He informed that his association along with other industry bodies has held talks with the government proposing certain level of exemption under the Goods and Services tax with immediate effect.

A response from the government is yet to come, he added. (KNN/ DA)