Patna, Jan 16 (KNN) In its pre-budget memorandum on Union Budget 2019-20, Bihar Chamber of Commerce & Industries has demanded a special category status for Bihar in order to match the national average and even cross the average to become the leader of growth in the country.

Submitting the pre-budget memorandum to Finance Minister Arun Jaitley, President of the Chamber, P.K.Agrawal suggested various measures for the speedy economic development of the state of Bihar.

With regard to ‘Sabka Sath Sabka Vikas’, Aggarwal emphasized that Bihar could not match the nation’s growth average in spite of being geographically on plains with very fertile land and with abundant labour force.

He said “We demand special category status for Bihar so that our state will match the national average and even cross the average to become the leader of growth in the country.”

The chamber demanded proper budget allocation for the industries like Sugar Industry, Power Industry, Agriculture based Industry, Food processing, Steel & Engineering Unit, Tourism Industry, Professional & Technical Education Institute etc for all round development of the state.

For industrial units, it demanded restoration of Section 80 IB (5) of Income Tax Act 1961 which was withdrawn w.e.f. 01-04-2004 to provide tax exemption for 3 to 5 years to new industrial units set up in the State of Bihar.

“The limit for spending in cash u/s 40A(3) was reduced to Rs. 10,000.00 which has caused hardship to the businessmen particularly very small traders should be restored to Rs. 20,000.00 at least,” Chamber recommended.

Besides, it recommended revision in tax rates in order to attract more and more people for filing their tax returns and to increase government revenue.

For Firm/Companies (irrespective of turnover), Chamber suggested a single slab rate of 25%. Besides, it recommended restoration of deduction of conveyance and medical allowances of salaried employees in addition to standard deduction of Rs. 40,000.00 and standard deduction of 30% on House Property u/s 24 of the Income Tax Act should be increased to 40%.

Further, it suggested “A special section should be introduced under Chapter VI of the Income Tax allowing 100% of the expenses done under CSR for skill Development/poverty eradication in the industrially backward areas by setting up their own centres or in collaboration with existing organisatons/Government.”

With regard to GST, it suggested quarterly return filing for GST by all SMEs with turnover upto 5 Crores.

Conditions for claim of Input tax credit for GST should be made rational and functioning of GSTN needs improvement and user friendly and a special task force should be formed for this, suggested Chamber.

In addition, it said “Suitable provisions must be incorporated under the EPF Act for surrender of registration by enterprises.”