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This state offers 50% VAT rebate to industrial units - Here's why

The Haryana government has decided to give a 50% rebate in Value Added Tax (VAT) to industrial units in the state.

In an official statement, the state government said this scheme will be applicable to entire industries including micro, small, and medium enterprises (MSMEs), and will be effective for two years from the date of its notification.

The decision in this regard was taken in the meeting of the standing finance committee held here under the Chairmanship of Chief Minister Manohar Lal Khattar. Haryana Deputy CM Dushyant Chautala was also present at the meeting, PTI reported.

Notably, the use of diesel-powered generator sets is banned in the National Capital Region. Now the industries that will meet their energy requirement from CNG, PNG will get a 50% exemption in VAT, it said.

Additionally, the committee also approved giving a subsidy of 164.66 crore per year to electric vehicle manufacturing companies under various heads, under Haryana Electric Vehicle (EV) Policy 2022, the statement read.

The chief minister was apprised that the EV policy aims to protect the environment, reduce carbon footprint, make the state an EV manufacturing hub, ensure skill development in the EV field, encourage uptake of EV vehicles, and encourage research and development in EV technology, as per PTI reports.

The policy encourages new manufacturing in EV technology and also encourages existing automobile manufacturers to diversify in the EV manufacturing domain. It also offers various financial incentives to EV manufacturers by giving incentives on fixed capital investment (FCI), net SGST, stamp duty, etc.

The state government also said that efforts shall be made to convert 100% of the bus fleet owned by Haryana State Transport Undertakings into electric buses or fuel cell vehicles or other non-fossil-fuel-based technologies by 2030.

The cities of Gurugram and Faridabad will be declared as model electric mobility (EM) cities with phase-wise goals to adopt electric vehicles (EVs) and charging infrastructure to achieve 100% e-mobility.

(With PTI reports)

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