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Punjabi SMEs Wish-list Pinned on Budget

By SiliconIndia     
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Bangalore: With the Union Budget coming up next month, Punjab’s MSMEs (Micro, Small, and Medium Enterprises) are revving up to receive a host of proactive boosts, such as incentives. They look forward to such measures, saying not only the sector but also the country’s economy would benefit, since it is a driving force of the economy. “We are pinning all our hope on the Budget, with our wish list,” said Ashwani Kohli, Vice President of The Punjab Chamber of Small Exporters.

The first on their list includes doubling of the central excise exemption limit for the businesses - from Rs 1.5 crore (Rs 15 million) which is the present limit, to Rs 3 crore (Rs 30 million).

The Punjab Chamber of Small Exporters further wished that the rate of interest for the units would be 10 per cent or less to enable MSMEs to pay back their loans easily. Kohli suggested that tax for the SSI units could be exempted for at least five years if they showed 20 percent of annual growth during that period of time. "The government should rationalize the cost of the raw material. It should be offered to MSME exporters at a uniform price across India irrespective of their location,” he added, particularly since steel exporters were concerned about the volatility of steel prices. “For the exportable finished goods, there should be a 50 per cent concession in the railway freight to carry them to ports,” he said.

Businesses in this sector want simplified procedures, along with measures that make things easier for them. One such measure would be to resume the 100 percent income tax exemption under Section 80 of the HHC on export profit, which was withdrawn in 2004.

The President of The Northern Chamber of Medium and Small Industries- Sharad Aggarwal agreed, and added to the list, and voiced concern for exporters over tax benefits “We expect the centre government not to further delay the implementation of the GST (goods and services tax) regime,” he noted.

Another SME player from the engineering sector, according to a report on Rediff business, emphasized n the need for the formulation of a Technology Upgrade Fund Scheme. The spokesperson for this SME expressed that India could achieve almost double the desired exports target in as small a period as three years and show growth in other areas as well. He also stressed on tax incentives for units that planned to upgrade their technology. Units that qualify for these incentives, as well as for the Fund Scheme, would include those in need of introducing facilities for in-house testing and on-line quality control would qualify for assistance.

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