Union Budget 2015-16 is a dumb squid and directionless- By Badish Jindal

The union budget 2015-16 presented today is a dumb squid and directionless, this will have negative growth on the Industry. Being the first budget the Industry was expecting some reliefs but this budget will bring more problems for the Industry especially the MSME.

•         The increase in Excise Duty from 12.36% to 12.5% will increase the inflation.

•         The increase in service tax from 12.36% to 14% will badly affect the industry.

•         The New service tax on Government & Local Bodies services provided to Industry is uncalled for.

•         The high increase in targets of taxes will put the pressure on already bed ridden economy:

Income Tax 18% Increase -revised Estimate 2014-15= 278599 Crores 2015-16= 327367 Crores

Service Tax 23% Increase-revised Estimate 2014-15-168132 Crores   2015-16 = 215973 Crores

Excise Duty 25% Increase- revised estimate 2014-15=185480 Crores 2015-16 = 229808 Crores.

•         The Decrease in planned expenditure from 366884 crores to 330019 crores is not realistic.

•         Even after so many big announcements the total expenditure is 1681158 of 2014-15 to 177477 crores in 2015-16.

•         The New service tax on various services provided by the banks through agencies to Industries in condemnable step.

•         The service tax on amusement parks will affect this industry.

•          The transport freight & Airfair will increase due to Service tax abatement from 25% to 30% & 40% to 60%.  

•         The increase in import duty of Iron from 10% to 15% will increase the cost and the monopoly of steel cartel will increase.

•         The Fund of 20000Crores for MSME Banking is just eyewash by the minister with a statement that 67% MSME’s are SC & ST, so other categories will be deprived of this facility.

•         All the announcements are just an old wine in the new bottle with changed names.

•         The increase in fund of MNRGA will adversely affect the industry.  

•         The corruption in the income tax will increase by giving the more powers to the officers and increasing the penalties.

•         By implementation of PAN number above cash purchase of 20000/- will impact the retail trade.

•         The Government again feared to tax agriculture.

•         The real estate sector will have a negative impact by putting the condition of PAN card on purchase above 1 lac.

•         The guidelines are wrong for EPF & ESI

•         The Government has increased the Duties on Water Milk & Tea which are essential commodities.

•         Even God can’t be happy by nil rates on agarbattis.

•         No roadmap for GST  & DTC was prescribed.

•         Nothing announced in regard to industry of Punjab or import duties.

So we strongly condemn this budget.

(The Author is President, Federation of Punjab Small Industries Associations- FOPSIA.)