Mahanta criticises Centre for withdrawal of duty exemption

GUWAHATI, JANUARY 5: Assam Chief Minister Prafulla Kumar Mahanta today criticised the Centre for withdrawing exemption of excise duties on...

GUWAHATI, JANUARY 5: Assam Chief Minister Prafulla Kumar Mahanta today criticised the Centre for withdrawing exemption of excise duties on the tobacco industry in the state and said it would result in huge investment losses for Assam.

"The decision to withdraw excise duty exemption from the tobacco industry is a big blow to the state government’s efforts to attract potential investors and will nullify all efforts to mobilise investment here", Mahanta told reporters here.

He alleged that the withdrawal was a "conspiracy hatched by some multinational companies to prevent other firms from setting up units here".

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The Chief Minister, in a letter to the Prime Minister yesterday, expressed concern at the withdrawal, which he said was a "retrograde step" affecting the state’s economy.

"The action of the finance ministry to withdraw excise duty exemption is a retrograde step and needs immediate rectification", Mahanta said in his letter to the Prime Minister.

The state industry minister Gunin Hazarika hasalready left for New Delhi to hold discussions on the issue.

He had earlier pointed out that the Centre’s decision was a major setback towards investments in the region and Assam alone will lose investments worth Rs 313 crore by this.