More than 3,000 industrial units of the district welcomed the Union budget that gave a 5% rebate in corporate tax for small businesses. Industrialists said it will promote healthy competition among industries and end users will also have benefits.
Finance minister Arun Jaitley announced on Wednesday that the tax rate for companies with an annual turnover less than Rs 50 crore will be reduced from 30% to 25%.
The finance minister said in order to make micro, small and medium enterprises (MSMEs) more viable, tax for smaller firms was to be reduced for a healthy growth.
Col (retd) Raj Singla, president, Chambers of Industries, Udyog Vihar, said, “We must thank the Union government for the 5% rebate in tax and this will give a boost to entrepreneurs. The entrepreneurs will be relieved but we must say that there are many more issues at the local level that we are suffering at hands of the administration. So, in that context, a mere reduction of 5% is not a big gain.”
“Earlier, it was 30% tax and now the government reduced it to 25%. This is a great relief for small and medium industries. This saving will encourage entrepreneurs to invest more. It can benefit end users also as products may become cheaper,” Manoj Tyagi, general secretary, IMT Manesar Industrial Association, said.
However, several entrepreneurs said 5% tax rebate in not a big relief.
Manmohan Gaind, Manesar Industries Welfare Association (MIWA) vice-president, said, “We were expecting a long-term relief as industries are going through a difficult time.”
Industrialists said property tax, lease deeds, transfer charge and maintenance charge continue to be a hurdle in industrial growth and they have been fighting to resolve the issues at the local level.