Entrepreneurship Development and Communication Skills

7.1.1.2.Sales Tax Exemptions

New small scale units located in places outside some specified distance from the cities, are eligible to get sales tax concessions and exemption. Interest Free Sales Tax Loan is given for the first five years of commencement of production, which is recoverable in 3 equal annual instalments from 6^th year onwards.

Some products like life saving drugs and essential chemicals are exempted from sales tax. In order to boost small scale sector, the Government has reduced sales tax on different items, as package of incentive.