The Bhartiya Janta Party (BJP) led government in the state of Uttarakhand has set its mood up to get the tax holidays extended from the central government for another three years.

In fact, the leaders of the opposition party Congress have also supported the move of extending the tax holidays. While the tax breaks vary from product to product but broadly it is referred to the excise duty concessions that the companies get who are operating in the state.

Notably, even if the BJP gets it approved from Honourable Prime Minister Manmohan Singh, it will again hit a roadblock once the central government applies the Goods sales Tax (GST) slated to make an appearance in April
2011.

According to the state investment commissioner's office, since the launch of the scheme, a total of 1,967 industrial units worth a whopping Rs. 17,352 crore have been set up in Uttarakhand providing employment to 121,811 people. The BJP government is of the view that once the tax holidays are over, many of the industries will be shifted to other places taking the state on to the backseat.