Patna: BJP yesterday accused Bihar Chief Minister Nitish Kumar of misleading people about investors getting windfall of tax incentives in the event of grant of special status to the state and said such incentives were not automatically linked with status benefit.
"The Chief Minister has been misleading people of Bihar that investors stood to get various tax incentives in the event of grant of special status...The fact is tax incentives have no automatic linkage with the special status," BJP leader Sushil Kumar Modi told reporters here.
Centre has all discretionary powers to extend tax incentives to investors in the special category status and that too for a limited period. In addition, tax incentives do not come automatically to a state upon grant of special category status on a particular date as here too, it's for the Centre to decide as to when it wants to give tax benefits to a state and specify sets of industries getting the benefits, the former deputy chief minister said.
To substantiate his argument, Modi said Jammu and Kashmir got special status way back in 1969 but the industrial incentive package was given to the state in 2002 and that too for 10 years, which was extended for another five years.
In Himachal Pradesh's case, the package was given in 2003 for only seven years even as the state was accorded special status in 1971, he said.
Uttarakhand - the last of 11 states getting special status in 2001 - got the industrial incentive package in 2003 for only 10 years, Modi said, adding that the package comprising capital investment subsidy, interest subsidy, comprehensive insurance subsidy and excise exemption have not been provided uniformly to all the special category status.
Besides, there exists a negative list of industries like plastic, rice mill, flour mill, cement, asbestos, soft drink,paper, tobacco, distillery and petroleum refinery. These units even if located in special category states have been kept out of purview of tax incentive package, Modi said.
Expressing concern over lack of infrastructure like land, power and road, he wondered as to how the Nitish Kumar government would be able to maximise gains after grant of special status.
Modi lashed out at Kumar for taking the sole credit for the special status campaign and said all political parties should be taken on board to put pressure on the Centre to grant special status to Bihar.
He said BJP too favoured special status for Bihar and the issue will figure during the 'Hunkar rally' in Patna on October 27 which will be addressed by Gujarat Chief Minister Narendra Modi among others.
