Union Budget 2016: Industrialists insist slash in Corporate Tax & hike in Excise Duty

As Union Budget 2016 is around the corner, main expectation of city industrialists and businessmen is a hike in the excise duty limit, taking it up to Rs5 crore and a reduction of corporate tax from 30% to 20%.
Industrialist's expectation for Budget 2016.

As Union Budget 2016 is around the corner, main expectation of city industrialists and businessmen is a hike in the excise duty limit, taking it up to Rs5 crore and a reduction of corporate tax from 30% to 20%. Introduction of goods and services tax (GST) has also been demanded along with monitoring of the present schemes by finance ministry.

Industry view

According to Chandramohan Randheer, MIDC Industries Association president, with increase in cost of inputs for industry, Rs1.5 crore is now nothing. The government should announce relaxation in labour laws. Exit of workers should be made easier, but compensation should be increased.

Butibori Industries Association (BIA) president, Nitin Lonkar, said that labour laws should be relaxed for SMEs. He also said that the Government has announced collateral free loans for SMEs, but banks don't provide the same. SIDBI has been appointed as the nodal agency for this purpose. SIDBI clears the applications, but banks still demand collateral.

According to Lonkar, the government should provide incentives to make solar energy cheaper. It should provide space in industrial areas for industrial associations to install solar panels and meet part of power requirement through solar energy. Manufacture and use of energy efficient products should be incentivized.

The BIA chief also supported a hike in excise duty and shared that it is very inconvenient for a small entrepreneur to maintain excise records and employ a person for this purpose.

Interestingly VIA president Atul Pande had other things in mind. As per him, in the backdrop of Make in India, a proper interface between industry and research institutes is must. The budget should allocate funds for improving the infrastructure of research institutes and provide major incentives to scientists to design new products for the industry. The charges of these institutes should be affordable for small industries. If that is not possible then government should provide subsidy to keep them low.

He also sought an improvement in the delivery mechanisms of the schemes started for new industries by the government. He added that the government announces several schemes for ease of doing business, but junior officials do not change their attitude and things come to nought. The finance ministry has to have a mechanism to take feedback from industries.

BC Bhartia of the Confederation of All India Traders (CAIT) said that there should be no foreign direct investment (FDI) in retail and e-commerce. He strongly said that GST should be introduced. A national trade policy for traditional retail trade and a separate ministry for internal trade should be set up. Food grains and essential items should be out of commodity exchanges. Incentives should be provided for encouragement of cashless economy and there should be separate laws for e-commerce and direct selling.

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