Coimbatore

MSMEs hope announcements in Union Budget will be implemented

The Union Budget has elicited mixed response from industry experts and industrialists here. While Micro Small and Medium Enterprises (MSMEs) are hoping that the announcements will be implemented, the transport industry is disappointed with the hike in excise duty on fuel by Re.1.

K.Nallathambi, former president of Tamil Nadu State Lorry Owners Federation, said that there were no announcements on including petrol and diesel under GST, determining per kilometre freight charges for lorries and regarding annual toll fee.

Besides, the government also hiked the excise duty by Re.1. This would severely affect the industry.

As for the silver jewellery industry here, K.V. Chandrapal, president, Salem Silver Leg Chain Manufacturers Association, said the industry had not been given any exemption in terms of income tax or excise duty.

K.K. Mariappan, president of Salem District Small Scale and Tiny Industries Association, said they expected collateral free loans up to ₹1 crore, but it was not announced. The 2% TDS on annual cash withdrawals must be reviewed. Most of the service based industries paid workers weekly and it would affect them badly. Mr. Mariappan added that removal of customs duty on defence components would boost its manufacturing. He said that there were no specific announcements on the defence hub in Salem. He also welcomed the proposal to utilise green technology to lay roads.

Welcoming the budget, P. Ramanathan, president of Salem Productivity Council, said that there were several schemes announced to support MSMEs and women self-help groups.

“We hope the announcements made for the sector will be implemented,” he said. The excise duty hike on fuels could have been 50 paise instead of a rupee. Huge investment had been announced for railway sector and the Council was hopeful that it would be beneficial in increasing productivity of MSMEs.


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Printable version | Sep 19, 2021 2:39:14 AM | https://www.thehindu.com/news/cities/Coimbatore/msmes-hope-announcements-in-union-budget-will-be-implemented/article28299641.ece

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