Pinning hopes on Budget for impetus to industry, Ludhiana bizmen seek tax relief

Tribune News Service

Ludhiana, January 7

The Union Budget is expected anytime later this month. The city industrialists, already facing the heat of Covid, are expecting high hopes from the government for their survival. Meetings are being held to discuss the issue and few organisations have forwarded suggestions to the Union Finance Minister.

Members of the Federation of Industrial and Commercial Organisation (FICO) said that lower tax rates would better the revenue. The government should pass on the benefit of 25% tax, given to the corporate, to the proprietorships, partnerships and LLPs also.

KK Seth, chairman, and Gurmit Kular, president, of the FICO, said that the steel prices had almost doubled in the last one year, making it unviable for the Micro, Small and Medium Enterprises (MSMEs) to operate. “Industries are suffering losses due to low increase in export orders, especially the MSMEs, which are on the verge of closure,” he added.

“We urge the government to rationalise the steel and other raw material prices as the sudden spike in raw material prices has made it impossible for MSMEs to meet confirmed orders,” said FICO members.

“We demand that the Credit Link Capital Subsidy Scheme should be made permanent as it is the only scheme for the up gradation of the MSME industry”, said Kular.

“Bicycle industry is the mother industry of Punjab, which makes India the second largest manufacturer of bicycles in the world after China. The latter produces 20 crore bicycle in one year, comparison to1.3 crore manufactured by India,” Kular added.

“If the government wants to reduce this gap then the technology up-gradation fund scheme should be introduced for the bicycle industry. The Indian industry needs funds to match the global standards of manufacturing,” said Kular.