A delegation of FICO met Badal on Wednesday and highlighted the issue of refund of value added tax (VAT). FICO asked Badal to reduce VAT rate on cycle and cycle parts as the industry was reeling under severe financial pressure.
FICO chairman KK Seth also told Badal that the files of VAT with the sales tax department were pending for a long time and there was no outcome. Seth said the cycle industry was forced to pay heavy interest to the banks due to loans.
FICO president Gurmeet Kular said in the new industrial policy there was no tax benefit to the micro, small and medium industries because of benefit and the minimum eligibility of investment was Rs. 10 crore. Kular added that the minimum eligibility should be reduced to Rs. 15 lakh.
Badal was also apprised by the delegation that there was a need to develop a new industrial area in the city. “After 1992, the state government has neither developed nor expanded any focal point. A new focal point is required for development of industries,” said Kular.
He also highlighted the poor infrastructure of focal points, industrial estate and industrial areas. “Proper attention should be given to upgrade the infrastructure like roads, street lights, sewage system in these areas. Members of the associations should be appointed to monitor the ongoing work for proper quality check,” he said.
The delegation that met Badal included Manjinder Singh Sachdeva, Rajeev Jain, Jagatvir Singh Jaswal and Balbir Singh Mankoo, general secretary, secretary, joint secretary and finance secretary of FICO respectively.