COIMBATORE: Industrial associations here have welcomed the Union Budget announced on Friday. President of the Indian Chamber of Commerce and Industry, Coimbatore, Mahendra Ramdas, told presspersons here that several measures announced in the budget would benefit the industries here. This included retaining Service Tax at 10 per cent, continuing 2 per cent interest subvention for some sectors and revision of the Income Tax slab.

The one-time grant of Rs. 200 crore to textile units in Tirupur for installation of zero liquid discharge system would benefit the garment industries immensely.

The increase in Minimum Alternate Tax (MAT) would affect several industries. The freight charges would go up with the increase in petrol and diesel prices and would fuel inflation, he said.

President of the Southern India Engineering Manufacturers’ Association Jayakumar Ramdass welcomed the retention of 4 per cent Excise Duty on pumps. Allocation of Rs. 61,000 crore for rural development would give an impetus to the agricultural sector, which would in turn give a boost to the pump industry here.

There was no specific measure to boost technology upgradation and skill development in the engineering sector.

The increase in MAT would affect new investment companies. “We expected the Finance Minister to continue the stimulus package for one more year. However, there is a partial roll back now,” he said.

President of the Coimbatore District Small Industries’ Association K. Ilango has said in a release that “the Budget is on expected lines. There are a number of positive features in the budget for the Micro, Small and Medium Enterprises.” For instance, availing Cenvat credit on capital goods in the first year of installation and payment of excise duty on a quarterly basis would ease the cash flow for small industries. Transfer of assets from small companies to limited liability partnerships was exempted from capital gains tax and this would facilitate such conversions.

Increase in fuel prices would increase the pressure on inflation. Focus on skill development was still inadequate to meet the growing needs of the manufacturing sector.

According to the Executive Director of Kirtilal Kalidas Jewellers Gibson G. Vedamani reorganisation of the Income Tax slabs would bring relief to about 60 per cent of taxpayers and this would increase consumption.

The Customs Duty increase on gold imports (from Rs. 20 per gram to Rs. 30 per gram) would push the price of jewellery up in the domestic market.

Gold jewellery buyers were already paying higher prices because of the acute gold price volatility.

Courtesy - Hindu