Mere simplification will not help SSI sector "The Finance Minister had not seen the negative impact of FBT on the SSI sector, which played a vital role in promoting economic growth of the country"
MADURAI: The Madurai District Tiny and Small Scale Industries Association (MADITSSIA) has "partially" welcomed the announcement of the Union Finance Minister, P. Chidambaram, to provide relief by simplifying the Fringe Benefit Tax (FBT) in the forthcoming budget.
"Mere simplification of FBT as requested by Confederation of Indian Industry and the Federation of Indian Chamber of Commerce and Industry will not benefit SSI sector. Hence, MADITSSIA urges the Finance Minister to scrap FBT in toto for the benefit of SSI and thus help its growth," the association president, S. Aravind, has said.
He expressed that the Finance Minister had not seen the negative impact of FBT on the SSI sector, which played a vital role in promoting economic growth of the country. Despite its contribution to development indices, the sector was neglected by the Centre, he opined.
Expenses incurred for promoting sales, on travel, discount, hospitality, etc., should be removed from the purview of FBT.
The employer - employee relationship catalysed through motivational incentive would be spoiled and retention of the employees would be affected if FBT was not scrapped for the SSI sector, which employed unskilled persons, he said.