Industry representatives in the city have welcomed the Union Budget proposals, especially the sops extended to the micro, small and medium enterprises (MSME).
The Tiruchi District Tiny and Small Scale Industries Association welcomed the move to reduce the corporate tax on small companies with turnover over of up to ₹50 crore to 25 per cent in order to make MSMEs more viable.
The move to launch the Skill Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) at an estimate of ₹4,000 crore will help the industry get skilled manpower, said S.Punniyamoorthy, Secretary, TIDITSSIA.
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Similarly, the decision to launch the next phase of Skill Strengthening for Industrial Value Enhancement (STRIVE) is also welcome. He appreciated the move to step up lending and the reduction in the personal income tax for individuals with income between ₹2.5 lakhs and ₹5 lakhs.
Describing the Budget as progressive that aims at inclusive growth, S.Ashok Sundaresan, president, BHEL Small and Medium Industries Association, appreciated the move to increase the lending target under the Pradhan Mantri Mudra Yojana to ₹2.44 lakh crore for 2017-18.
“The various skill development programmes would give MSMEs talented manpower. The thrust on digital and less cash economy will enable MSMEs to show higher turnover. This will enable them to get more bank loans. The lowering of income tax rates for small corporates would be helpful.”
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Agro based small units would benefit from the move to promote integrated transport solutions. The relief in personal income tax by lowering the tax rate to 5% in lowest slab is timely, MrSundaresan observed.
The real estate sector gave the thumbs up to the announcement on affordable housing being given infrastructure status. The sops extended to affordable housing has been extended for five years. The holding period for capital gains tax for immovable property reduced from three to two years. “These are welcome moves and we hope that they would give an impetus to the sector in the coming months,” said T.V.Murali, former president, Confederation of Real Estate Developers Associations of India (CREDAI), Tiruchi.
The increase in spending on infrastructure sector and the sops for affordable housing would help the industry, said Noor Mohamed, president, CREDAI, Tiruchi.
J.Sankaran, chairman, Builders Association of India, Tiruchi, hoped that the Budget proposals would give the much needed push to the housing sector.