Ludhiana industrialists welcome tax reforms
FICO president Gurmeet Singh Kular welcomed the revision in the MSME definition but hit out at the suspension of the Credit Link Capital Subsidy Scheme, which was meant to assist MSMEs in technology upgrades
City industrialists on Saturday welcomed the revision of tax slabs, allowing for tax reforms for income up to ₹12 lakh, in the Union Budget. The Budget was presented by Union finance minister Nirmala Sitharaman on Saturday.
The Federation of Industrial and Commercial Organization (FICO) appreciated revision in definition of Ministry of Micro, Small and Medium Enterprises (MSME). Industry leaders, however, expressed disappointment over the lack of tax rationalisation and other long-standing demands. Tax rationalisation is aimed at simplifying the tax structures.
FICO chairperson KK Seth emphasized that industry has been demanding rationalised tax structure for a long time. He pointed out that private and public limited companies are capped at a 25% tax rate even as partnership and proprietorship firms pay 30%.
FICO president Gurmeet Singh Kular welcomed the revision in the MSME definition but hit out at the suspension of the Credit Link Capital Subsidy Scheme (CLCSS), which was meant to assist MSMEs in technology upgrades. He demanded that the scheme be made permanent, the limit extended to ₹5 crore and the subsidy increased from 15% to 25%.
FICO vice-President Baldev Singh Amar highlighted challenges faced by north Indian exporters due to their distance from seaports and called for a subsidy to help exporters from Punjab compete with those closer to ports.
CICU chief lauds ‘balance’
Chamber of Industrial and Commercial Undertakings (CICU) president Upkar Singh Ahuja lauded what he said was ‘balanced’ nature of the Budget that focuses on increasing the common man’s income and reducing financial burdens.
Leaders from other industries, including Ludhiana Sewing Machine Industries Association president Amarjit Singh Dimple and Nova Cycles director Rohit Pahwa, welcomed key decisions such as tax exemptions, tax deduction at source (TDS) on rental income and removal of TDS on overseas education fees.
The allocation of funds for infrastructure and reduction in customs duty on iron imports were also perceived as positive steps that will benefit industries in the long run
Confederation of Indian Industry (CII) export committee for Northern Region chairperson Amit Thapar said that the focus on research and development (R&D) spending is a welcome step, pointing out that India’s spend on R&D is low in percentage of Gross Domestic Product (GDP).
Oswal group chairperson Adish Oswal welcomed the Budget for its ‘forward-looking’ approach and commitment to growth, keeping in mind the income tax relaxation and focus on green energy, technology and infrastructure development.
He said it lays emphasis on strengthening the agricultural ecosystem, with a focus on enhancing productivity, promoting crop diversification and improving post-harvest infrastructure. The announcement of the National Movement on Cotton will boost the cotton growth and the textile industry, he added,
‘Old wine in a new bottle’
World MSME Forum president Badish Jindal said the Budget is ‘damp squib’ and just an old wine in a new bottle. He said that instead of enhancing tax slabs, there was a need to make policies that could enhance the income levels. He said the total outlay increased a mere 4% against an inflation rate close to 8%.
Rajya Sabha member Sanjeev Arora expressed disappointment over underfunding of health sector, pointing out that the allocation remains below 2% of the total Budget, falling short of the 2.5% target set in the National Health Policy 2017.