CICU Submitted Pre -Union Budget 2016-17 Proposals to Union Finance Minister
Author(s): City Air NewsLudhiana, February 10, 2016: The second full Union Budget 2016-17 of NDA Government lead by Sh.Narinder Modi Prime Minister of India is to be presented by Sh.Arun Jaitely Finance Minister on February 29. Taking...
Ludhiana, February 10, 2016: The second full Union Budget 2016-17 of NDA Government lead by Sh.Narinder Modi Prime Minister of India is to be presented by Sh.Arun Jaitely Finance Minister on February 29.
Taking into consideration the present economic scenario, Sh.Avtar Singh President & Sh.Upkar Singh Ahuja General Secretary of Chamber of Industrial and Commercial Undertakings (CICU) after detailed discussions held in the Executive Committee Meeting comprising prominent industrialists and captains of affiliated associations, have requested & urged upon Finance Minister for consideration of Pre-Union Budget proposals as under:
1. Providing relief under Income Tax
a) Already our tax rate is higher as compared to progressive countries. Lowering Tax slabs from 20% to 15% and 30% to 25% will increase Tax Revenue and also enhance tax payers base.
b) Income Tax exemption limit should be increased to Rs. 3.00 lac for general tax payers and 4.00 lac for senior citizens.
c) Entire interest income from all sources for Senior Citizens should be exempted from Income Tax.
d) Limit u/s 80C should be enhanced to at least Rs. 2.00 lacs. Investment made under R & D should be given deduction under 80 C of Income Tax Act.
2. Higher Capital limits for Manufacturing & Services Proposed by MSME Ministry Should Be Implemented
For Manufacturing Sector the proposal suggests as under.
a) For Micro Enterprises doubling the capital ceiling from Rs 25 lakh at present to Rs 50 lakh.
b) For Small Enterprises to hike the limit from Rs 5 crore to Rs 10 crore.
c) For Medium Enterprises doubling the limit from Rs 10 crore to Rs 20 crore.
For Services Sector the proposal entails as under.
a) For Micro Enterprises doubling the investment limit in plant and machinery Rs 10 lakh to Rs 20 lakh.
b) For Small Enterprises, raising the limit from Rs 2 crore to Rs 5 crore.
c) For Medium Enterprises the limit from the present Rs 5 crore to Rs 10 crore.
The proposed limits should be implemented with a cap that Multi National companies are not categorized in Medium Category to safeguard and protect the MSME Sector.
3. Providing Relief in Central Excise Duty.
a) The prices of input have increased manifolds leading to hike in unit cost therefore central excise exemption limit for MSMEs should be enhanced to Rs. 5.00 Crore.
b) Waiver off Excise Duty on
i) Eco-friendly bicycles and sewing machines which are poorest person common use consumables.
ii) Agricultural implements parts and gear box used in agriculture machinery.
4. Modifying Credit Linked Capital Subsidy Scheme (CLCSS) for Technology Up-gradation of Micro and Small Enterprises
Ministry of Micro, Small and Medium Enterprises is operating this scheme which was launched in October-2000 and revised on 29.9.2005. Taking into consideration the current capital cost of machinery this scheme needs modification as under.
a) The existing 15% capital subsidy limited to maximum Rs.15 lakhs should be enhanced to Rs. 50 lakhs for purchase of plant & machinery.
b) Subsequently maximum limit of eligible loan for calculation of subsidy under the scheme should be increased from Rs.100 lakhs to Rs. 500 lakhs.
c) Purchase of second hand machinery where no substitute is available should be included.
5. Allocation of More Funds under Marketing Assistance Scheme to National Small Industries Corporation Ltd.
Please allocate sufficient funds under MAS Scheme to NSIC Ltd. so that Micro and Small units of Punjab State are not deprived of participation in Industrial Exhibitions.
Kindly also allocate funds on state wise basis so that MSMEs of a particular state like Punjab should not suffer and get the adequate benefits for their growth and development in this competitive era.
6. Providing Sops for Export Industry.
To boost exports, exporters should be granted following incentives.
a) Exemption from all indirect taxes.
b) Granting 5% increase under duty drawback scheme.
7. Low Cost Automation Incentive/Subsidy Scheme should be Introduced for Micro & Small Industry.
8. Granting Special Incentives to Punjab at par with Neighboring States.
a) Fiscal incentives being given to Neighboring States i.e. Uttranchal, H.P., and J & K should also be provided to Punjab.
b) Punjab State is situated far off from ports therefore MSMEs have to incur more expenses for import of raw material and export of finished goods. The prices of steel, cement, coal & petroleum products should be same throughout India by introducing freight equalization system.
9. Import of Under Billing Chinese Goods Should be Plugged to Save Domestic MSME Industry.
Minimum floor price of Chinese goods being routed to India through Sri Lanka, Bangladesh & Nepal should be fixed instead of declared invoice value for levying Custom Duty.
10. Reduction of Lending Rates is Imperative for Industrial Momentum Picking up
RBI should be advised to lower lending rates for MSMEs on the pattern of Mudra Bank Loan Scheme which holds the key to produce, support and invest in industrial sector.
11.Introducing More Measures for Speedy Rehabilitation of Potentially Viable Sick Industrial Units.
12.Linking Indexed Cost of Acquisition and Improvement with Market Rate of Immovable Property.
Immovable Property comprising land and/or building held by the owner for more than 36 months on its sale is chargeable to income tax under the head Long Term Capital Gains subject to consideration of full value less transfer expenditure (like brokerage, legal expenses etc.), cost of improvement and indexed cost of acquisition.
Indexed cost of acquisition and improvement based on yearly cost inflation index being notified by Government of India since 1981-82 is highly irrational and very less as compared to yearly property rate which is revised and enhanced subsequently on higher side by District Collector for registration of sale deed. You are requested to link the cost inflation index with the market rate of the property based on the rate fixed by District Collector for registration of sale deed.
13. Allocation of Funds for Speedy Construction of Green Field Airport at Machhiwara district Ludhiana, Punjab already approved by previous Government.