Bhopal: The new plan of the Madhya Pradesh state government headed by Chief Minister Mohan is being prepared and is based on investment. Here, major tax concessions will be offered to the industries. The proposal, in particular, contains tax credits and a reduction of property taxes for enterprises within urban areas. Thus, instead of a property tax, a service tax is to be introduced. This is one program in the context of the government’s efforts to promote industrial growth and investment in the region.

At present, industries situated in municipal areas are paying property taxes and lease rents to local urban bodies. This has been an issue of debate; several industrial bodies have supported the abolishment of double taxation for quite some time now. Due to these concerns, the Mohan government is contemplating some changes to meet the problem.

This new plan is expected to come up in the next cabinet meetings. This produced a positive outcome in the government’s efforts today because it has been promoting various strategies that help enhance industrial development and investment. One such endeavour is conducting Regional Industrial Conclaves that serve the purpose of assembling powerful industries and prospects in the area to focus on possible ways of development. Also, to enhance the business climate in the state, the government is planning to bring in special incentives for micro, small, and medium enterprises (MSMEs), which already exist.

This action confirms the recent trend of acknowledging the fact that there is a need to change the business and investor-friendly economic environment. In a bid to get rid of these issues and ensure its fears concerning taxation are alleviated along with well-timed incentives, the government envisions itself promoting industrial development and consolidating Madhya Pradesh as a favorable investment hub in India.

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