Punjab Border Zone Duty Exemption
Department of Industries & Commerce, Government of Punjab · Central government
Punjab offers the first two operational units per sector in its Border Zone and Kandi areas a 75% waiver on state duties, taxes and fees.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
About this scheme
Punjab's Industrial and Business Development Policy 2022 offers a 75% exemption from all state duties, taxes and fees — including the Rural Development Fee, Market Development Fee and State Excise Duty — to the first two units to begin operations in the Border Zone and Kandi areas, for each sector of manufacturing and service industry. Because these levies apply to procurement and operations rather than being a one-time capital concession, the benefit grows with volume over the unit's lifetime. The first-two-per-sector cap means the incentive goes to whoever commissions first, not simply whoever applies.
Who can apply
- Eligible business forms
- Not specified
- Udyam registration
- Not specified
- MSME registration
- Not required
- DPIIT startup recognition
- Not required
- GST registration
- Not specified
- Where the business may be based
- Jammu and Kashmir
- Units beginning operations in Punjab's Border Zone and Kandi areas - Restricted to the first two units in each manufacturing and service industry sector - Applicable to state duties, taxes and fees, including Rural Development Fee, Market Development Fee and State Excise Duty
How to apply
- Create an account for the project on the Invest Punjab Business First portal. - File the application under the Border Zone & Kandi Area package of the Industrial and Business Development Policy 2022. - Provide evidence that operations have commenced, along with details of the sector and the location. - Collect the exemption certificate once issued, and apply it to offset the state levies levied.
Frequently asked questions
Which levies are covered?
Which state duties, taxes and fees are covered? Rural Development Fee, Market Development Fee, State Excise Duty and all other state-level duties, taxes and fees fall within its scope.
How much is exempted?
75%.
Who qualifies?
In the Border Zone and Kandi areas, the first two units to begin operations in each manufacturing and service industry sector qualify.
Does it cover service industry units?
Yes, the clause covers both the manufacturing and service industry sectors.
Sectors
- Punjab
- Borderzone
- Kandiarea
- Taxexemption
- Ruraldevelopmentfee
- Industrialpolicy2022
Details last verified on 14 September 2026. Source: the issuer's published information.