TAX FREE ZONE

'Tax Free Zone needed to overcome recession'

COOCH BEHAR, Dec. 10: The global economic recession has exerted its influence on a remote district like Cooch Behar too. The Chakchaka Industrial Growth Centre (CIGC) near Cooch Behar town is now suffering from different hurdles. There are 34 units functioning at the CIGC presently. A few entrepreneurs who came forward here with an intention to set up new units are now thinking otherwise. At this moment they are not interested in investing funds to set up new units or expand the existing ones.

 

It may be noted that since launching of the CIGC three manufacturing units have closed down shutters. The closed three units were engaged in producing monofilament, wheat flour and biscuit. During the last two months the production rate came down by sixty percent, a few owners of manufacturing units said.

 

The secretary of Cooch Behar District Industrialists' Welfare Association (CDIWA) Mr Depak Mundra said that following global recession a few entrepreneurs who came up to set up about five new units to produce items like utensils made of aluminium, mustard oil and a mini rice mill are now feeling hesitant in investing funds. They like to wait for some time to see the outcome of the ongoing recession.

 

As the industrial units in the CIGC is dependent on north Bengal and Assam the ongoing turmoil in Assam is also became a factor. The marketing process of the produces is suffering due to the situation, Mr Mundra opined. Moreover, the increased interest rate of banks and hiked price of raw materials are also playing a negative role in decreasing the production rate and profit.

 

The CDIWA secretary said they would make appeal to the Central government to consider the long-standing demand to make north Bengal a tax-free zone. Once implemented, the industrialists will get benefits like waiving of excise and other taxes on produces in the tax-free zone. The Government should also liberalise the tax system including VAT to inspire the entrepreneurs to set up more industrial units, he said.