The Government of Punjab has introduced a package (FIIP - 2013 [R]) to incentivize new investment in the State. This package provides attractive benefits on VAT, CST, Stamp Duty, Electricity Duty and Property Tax amongst other benefits. The State has taken a landmark step by permitting retention of VAT and CST by industries. The package also provides exemptions from regulatory checks to certain classes of industries.
The new package of fiscal incentives aims to drive growth by providing companies with an opportunity to partially or fully recover their fixed capital investments through retention of VAT and CST.