Ludhiana, Jan 10 (KNN) The MSME units across sectors in Punjab have demanded that the Finance Minister should address their concerns related to income tax in the upcoming Union Budget.

Post demonetization, industry has more expectations in the form of reduced tax rates and enhanced tax slabs in the Union Budget 2017.

The annual Union Budget is normally announced at the end of February. But this year, this important event has been preponed and the Union Budget 2017 will be presented by the finance minister in Parliament on February 1, 2017.

KNN spoke to various industry representatives in Punjab to know their expectations from the Fin Min.

Rajev Jain, General Secretary, United Cycles and Parts Manufacturers Association (UCPMA) said emonetization has adverse impacts over industries and the MSMEs have suffered a lot due to this.

Considering this, the tax slab should be increased and tax rate should be brought down, UPCMA urged adding

He said decrease in tax rate will encourage more people, who are now scared of paying high tax rates, to avoid tax evasion.

Talking about the cycle industry, Jain said the prices of steel have become severe issues for the cycle industry.

“As in January itself, the prices have been increased up to Rs 40,000 per tonne due to demonetization. So when we talk about globalization there should be some priority given to the industries in order to make them globally competitive.”

He said Government should provide some incentives to the cycle industry.

“They should at least abolish the central excise duty of 2% on bicycles,” Jain said.

Chairman of Mohali Industries Association (MIA) Jasbir Singh, Chairman said that income tax applicable limit should be increased up to Rs 5 lakhs.

“Limit of income tax should be raised from 2.5 lakhs to at least 5 lakhs and the high rates of income tax should be brought down,” said Singh.

He also said that the workers have to pay 6.5 % to ESIC and 25 % in terms of Provident fund. “This 25% is too much for the workers it should also be considered by government,” said Singh.

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S C Ralhan, President, Federation of Indian Exports Organization (FIEO) told KNN that limit under CLCS for MSMEs should be enhanced which will enable them to widen their growth.

“Under the Credit Linked Capital Subsidy (CLCS) Scheme the limit should be increased from 1 crore to 5 crore. As government is full of funds, the rate of income tax should be decreased from 30 to 10 percent over 10 lakhs. This will result in the promotion of micro industries to small, small to medium and so on,” said Ralhan.

The Scheme aims at facilitating technology up-gradation by providing 15 per cent upfront capital subsidy up to a maximum cap of rupees 15.00 lakhs (i.e., maximum investment in approved machinery is rupees 1 crore) to MSE units.

According to FIEO President, “There should be a provision of subsidy, for the areas which are placed at or over 1000 kms from the coastal region,” said Ralhan, while considering the issues of transportation in export business.

The entire industry is waiting to see what the government has to offer them in this year’s budget as they have already suffered the aftermaths of demonetization in terms of cash crunch, wage payment issues, demand slowdown etc. (KNN/RAS)