Custom duty hike on toys, bicycles to help MSMEs compete with foreign manufacturers: TANSTIA

Chennai, Feb 2 (KNN) Responding to the union budget announced on Wednesday, Tamil Nadu Small & Tiny Industries Association (TANSTIA) said the increase in customs duty on Textiles, Toys, and Bicycle from 21 per cent to 31 per cent will give an edge to the MSMEs to complete with the foreign manufacturers.

However the association is of the view that mostly policies are announced and no specific plans found in this Budget.

It said that collateral free guaranteed credit of Rs 2 lakh crore under Credit Guarantee Scheme for MSME under the revamped expanded corpus fund scheme is not much beneficial to revive back the MSMEs.

K. Mariappan, President of TANSTIA said, “Basic Customs duty consumption on lithium iron battery, camera lens to the manufacturer of electronic goods, such as mobiles and deduction of customs duty, Television, TV Panels will make the selling price of TVs Cheaper.”

The increase in customs duty to silver bars will affect the silver ornament manufacturing MSME units, he pointed out.

TANSTIA chief further noted that the basic customs duty has been reduced for seeds in manufacturer of diamonds, but the increased cost of gold and silver ornaments due to the increment of customs duty in unwarranted.

He has appreciated the time extension to avail start-up benefits upto March 31, 2024.

“TDS on EPF withdrawal and new IT form for ESF filing are welcomed initiatives,” he added.

TANSTIA has welcomed the setting of 30 Skill India Information Centre and launching of National financial information registry for financial strategy.

Appreciating the implementation of Mahila Samman Bachat Scheme for Women to the tune of Rs 2 lakhs at 7.5 per cent, the association has applauded the reduction of the average processing period for the processing of refund of IT from 93 to 16 days.  (KNN Bureau)