New policy for north-east cleared

NEW DELHI: The government on Thursday notified the 10-year excise holiday for new units and existing units undertaking substantial expansion under the new North East Industrial Policy.

However, industries including pan masala, cigarettes and other tobacco products, plastic carry bags of less than 20 microns and petroleum products produced by petroleum oil or gas refineries will not be able to avail the excise holiday. The excise holiday cannot be availed even by existing units of these industries.

With a view to prevent misuse of the tax holiday and also to ensure that the policy leads to actual economic development in the north east, the government has tightened certain provisions whereby the benefit will be restricted if a unit just carries peripheral activity like repackaging.

For example, if an oil manufacturer just repackages it in small bottles, it would not amount to incremental manufacturing activity and will not be eligible for exemption.