Chandigarh: The industry in Haryana on Thursday sought input tax credit on using diesel for running their factories in the wake of heavy load shedding taking place across the state.

A delegation led by Haryana Chamber of Commerce and Industry placed this demand before senior officials of Haryana Excise and Taxation department in a meeting held here on Thursday.

Industry representatives pointed out that there had been severe power shortage across the state, thereby forcing them to use diesel-run generators to produce industrial goods.

"As the state (Haryana) is not able to provide full electricity to the industries, diesel used in D G sets should be allowed as input (tax credit). The department may make a base for it on the basis of electricity supplied by the electricity department and the figures can be taken from them," said Chamber’s President Satish Gupta here.

"The power cuts in the state are in the range of 10-12 hours and industry is not getting enough power to work. That is why demanded that input tax credit be given on diesel as we are running our factories on generators most of the time and diesel is our main input item," said Panchkula based industrialists Parveen Aggarwal. He said that VAT on diesel is at present 8.8 percent in the state.

Industry representatives had even raised power shortage issue with senior officials of Haryana power to ensure uninterrupted power supply.

The industry has also demanded similar tax credit on usage of furnace oil used for boilers to generate steams and heat.

The chamber also urged the department to lower VAT on adhesives from 12.5 percent to 4 percent. It also sought that tax on plywood should also be lowered to 4 percent instead of 12.5 percent at present as various states have put this category into lower tax slab.


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