The micro, small and medium enterprises (MSMEs) in Punjab, also considered as growth driver of the state's economy, are pinning all hopes on the Union Budget with their wish list.
In the wish list for upcoming Budget 2015-16, the industry seeks speedy implementation of Goods Service Tax (GST), higher capital limits for manufacturing and services proposed by MSME ministry, relief in central excise duty etc.
According to data, Punjab has 160,000 working units up to 2013-14 and it is considered as backbone of the state economy.
Taking into consideration the present economic scenario, Ludhiana-based Chamber of Industrial & Commercial Undertakings (CICU) in consultation with its over 10000 members (directly and indirectly combined), drafted a pre-Union Budget wish list and submitted to Union Finance Minister Arun Jaitley.
Speaking to Business Standard, CICU President Avtar Singh said, "In our pre-Budget proposal submitted to the Union finance minister, we seek speedy implementation of GST. This will replace the multi-tax system prevalent in India since long and bring uniformity in tax structure. Above all, this would improve the tax administration while bringing transparency in the system."
"In addition to this, we seek higher capital limits for manufacturing and services as proposed by MSME Ministry. For manufacturing sector, the proposal suggests doubling the capital ceiling from Rs 25 lakh at present to Rs 50 lakh for micro enterprises, from Rs 5 crore to Rs 10 crore for small enterprises and doubling the limit from Rs 10 crore to Rs 20 crore for medium enterprises," he added.
The proposal states, similarly for micro enterprises in services sector, the investment limit in plant and machinery should be doubled from Rs 10 lakh to Rs 20 lakh, it should be raised from Rs 2 crore to Rs 5 crore for small enterprises and the limit from Rs 5 crore to Rs 10 crore for medium enterprises."
He added the proposed limits should be implemented with a cap so that multinational companies are not categorised in medium category to safeguard and protect the sector.
In addition, the proposal also seeks relief in excise duty as the prices of input have increased manifold leading to hike in unit cost.
The industry seeks central excise exemption limit for MSMEs should be enhanced to Rs 5 crore. Further they wish the government should waive excise duty on eco-friendly bicycles and sewing machine which are commonly used by the poor.
WISH LIST FOR UNION BUDGET
The industry wants higher capital limits for manufacturing and services, relief in central excise duty
The industry's proposal suggests doubling the capital ceiling from Rs 25 lakh to Rs 50 lakh for micro enterprises, Rs 5 cr to Rs 10 cr for small enterprises and Rs 10 cr to Rs 20 cr for medium ones
- The proposal also suggests these limits should be implemented with a cap so that multinational firms are not categorised in medium category, for safeguarding and protecting the sector