Union Budget 2021: Coimbatore, Tirupur Industrialists are having high expectations
Coimbatore: The expectations among the Coimbatore and Tirupur industrialists about the union budget 2021 is on the rise. This year for the first time in history Union budget 2021- 22 is going to be submitted paperless.
The pandemic outbreak has made an impact in all the industries which come under the manufacturing sector. On the other side the abnormal price increase of raw materials continues to push industries to crisis. In this situation the expectations from the Coimbatore and Tirupur district industrialists about the union union budget is more.
Indian Chamber of Commerce and Industry(ICCI) Coimbatore chapter, President, C. Balasubramanian said, "Swachh Bharat mission is actively pursued by the government. Activities such as water supply project, water treatment system, irrigation project sanitation and sewage system, solid waste management extra should be defined as infrastructure facilities and deductions be allowed for profits under section 801A."
"The rate of surcharge has been increased from 25 % to 37% for income over rupees 2 crore and 5 crores. With that effective tax rates at MMR also have gone up. Hence business, trust and AOPs may be given relief from this additional surcharge. Reduction in tax rate should be made applicable to Firms/ Limited Liability Partnerships also."
"Timeline for filing a revised tax return and consequently timelines for completion of tax assessment. Enhanced surcharge for high- income earners. Clubbing of Minor’s Income- exemption under section 10(32)."
Tirupur Exporters Association(TEA) President, Raja M Shanmugam said, "The loans announced by the central government post pandemic outbreak has not reached SMA1(due dates barred 30 days), SMA2(due dates barred 60 days) category industrialists. The industries who come under these categories should not be considered as defaulters. Rather they are in the process of fulfilling the dues. Hence the loan schemes should be extended for them also. Due dates barred 90 days are only called NPA(Non Performing Asset) which is to be noted. Our sector is a labour intensive industry sector. Government, Industry, Labour must be jointly formed from Tiruppur as an industrial cluster. For this investment given from the industries must be treated as expenses with double weightage."
"If the Government fulfills this request, this scheme will be more intensified, labour support efforts will be taken forward and which will help to fulfill the prime minister's initiative ensuring housing for all. Knitwear industry doesn't have Research and Development facilities so far. Hence we expect and R&D facility exclusively for knitwear to be established. "
Indian Texpreneurs Federation(ITF) convener, D. Prabhu said,"Expecting a definite policy trend of Lower level of import duties on various raw materials across the products to bring competitiveness at the raw material stage to Indian manufacturing sector. Expecting Mega Apparel city project announcement to bring much needed scale in apparel manufacturing. More thrust towards the growth of labour intensive manufacturing sectors ."
Tamilnadu Association for Cottage and Micro Enterprises (TACT) District President, J. James said, "The impact caused by the pandemic outbreak and the abnormal price increase of raw materials has pushed the entire MSME Sector to crisis. Considering the Welfare of the industry sector the government should fix only one Tax slab of 5% to the entire MSME sector. Many sub divisions under the GST scheme are hitting very hard on the micro Industries hence all those subdivisions should be removed. exclusive loan schemes for the Micro sector must be implemented. Special funds should be allotted for establishing industrial parks."
Kovai Power Driven Pumps and Spares Manufacturers Association(KOPMA) President, K.Maniraj said, "There should be only one Tax slab under the GST scheme. At present more burden Has Fallen on industries since we have to monitor whether the supplier from whom we buy materials based GST or not. At present we are paying GST every month it should extend to 3 months. Because we are not getting the payment within 30 days that is why we are asking for 60 days and 90 days to pay the GST tax. Prime Minister's dream loan scheme mudra is not helping MSM Industries especially who comes under the manufacturing sector this loan scheme is helping only the service sector more. need changes should be made. Abnormal pricing of raw materials is the main issue which all the industrialists are facing and hence the government should take strict action which will ensure all the raw materials are available at affordable prices. Many traders are involved in creating artificial demand for raw materials by stalking more the government should take necessary action on this issue also. More than 70% of the spare parts in the pumpset industries are manufactured using petroleum products. MSP price hike of petrol and diesel directly have an impact on the pump set industry. Like before the government should fix the price for petrol and diesel. Crude oil price in international market prices abnormally the excess amount charged for petrol should be taken here by the government by providing subsidies."
The Southern India Engineering Manufacturers Association (SIEMA) President, K. V. Karthik said, "Reducing import duties on Steel, copper, PVC resin. Impose export duty on Iron ore. Provisions of Section 35(1)(ii) and( iii)allows deduction of expenses on Scientific Expenditure and has been reduced from 200% to 150% in 2020 and 100% wef 2021. To spur innovation the same has to be restored to 200%. The process be simplified with contribution/collaboration with any approved DSIR scientific institute be permitted. Getting approval after DSIR approval from finance ministry is cumbersome.
ECGLS scheme be extended. The limit of 20% on outstanding loan be increased to 40% or 20% of sanctioned limit. The intrest rate be fixed at 7.5%. Pumpsets be classified as essential agricultural machinery. Without Pumpsets for irrigation other machinery classified as essential such as tractors/tillers have serve no purpose."