SAC nods Toll Tax exemption for special development projects
Jammu: The State Administrative Council (SAC) which met here today under the chairmanship of Governor, Satya Pal Malik accorded sanction to the exemption of Toll Tax on machinery, equipment and key input materials being brought to the State for special projects like those under PMDP, National Highways, Airports, Railways, Educational and Medical Institutions etc.
Such exemption will only be granted if the executing organ of the Central Government or the State directly seeks such exemption in advance specifying numbers or volume of machinery, equipments or key input materials being brought. Such exemption will not be granted, if applied directly by the contracted executing private firms.
Pertinent to mention is that Toll Tax on machinery, equipment or key input materials being brought into the State for the execution of important projects adds up to the cost of the project, which was not originally envisaged. Since all prestigious projects are almost 100% centrally funded in the absence of State’s own resources, therefore, it makes sense that the State plays a facilitating role by not levying additional tax on machinery, equipment or key input materials being brought into the State for execution of these projects.