Centre refuses I-T exemption for old settlers like Sikkim Subjects

Gangtok: Sikkim Democratic Front government headed by Chief Minister Dr. Pawan Chamling has repeatedly recommended to the central government to exempt the old settlers in Sikkim among businessmen from direct central taxes including income tax as already done for the Sikkim Subjects.

To strengthen the recommendation, the government has also passed a resolution on the issue in the state legislative Assembly in its 2011-12 budget session which raised high hopes in the business community here.

However, such a hope of the old settlers has been shattered, at least for the time being, consequent to a recent letter from the Union Finance Ministry to the state Chief Secretary. In the letter centre has refused to include the non-Sikkimese in the fold of Sikkim Subject for tax exemption, it is learnt.

Countering the state government’s pleading on the issue, the Union Finance Ministry is believed to have contended that exemption of Sikkim Subjects from direct central taxes was decided after protracted deliberations with the state government and that the issue can not be reopened again.