Industry hails increased turnover limit

Boost to MSMEs: Unaddressed goods and services tax slab rates leave city’s traders despondent

The local industry including auto parts and cycle manufacturers gave a thumbs up to the increased turnover limit for startups to avail tax rebate and online refund of duties on exports in the 2020 Interim Budget announced by finance minister Nirmala Sitharaman on Saturday.

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Earlier the turnover limit for startups to avail 100% rebate on tax deduction on their profits was ₹25 crore. It has now been increased to ₹100 crore. The corporate tax benefit to the startups has also been extended by the government.

The industry including the micro, small and medium enterprises (MSME) has also applauded the announcements like stringent norms for getting certificate of origin, relaxation given on corporate tax for the new units and abolition of dividend distribution tax (DDT).

However, industrialists have raised concern over no change in goods and services tax (GST) slab.

Chamber of Industrial and Commercial Undertakings (CICU) general secretary Pankaj Sharma said, “It seems like government is serious about reviving the economy and a few good steps have been taken for the same including proposal to establish exports hub in every district, online refund on duty drawbacks on exports etc. Further the lower income tax rate regime is also a good sign for individual taxpayers.”

However, the government should have addressed the GST slab rates issue and some relief should have been given to the industry in order to revive it from recession, said Sharma.

Apart from this, the industry expressed its displeasure over the failure of the government in focusing on technology upgrade and increasing the MSME investment limit.

President of the Federation of Industrial and Commercial Organisation, Gurmeet Singh Kular, said, “The decision to make stringent norms for exporting goods to India with certificate of origin is a good step as China used to dump goods in India through countries which have signed the South Asian Free Trade Association (SAFTA) agreement with India with zero duty. “

Of tourism and employment

While the tourism industry has hailed the budget announcements, architects have given a thumbs down to the budget.

Joint managing director of MBD Group, Sonica Malhotra Kandhari, said, “Announcement such as development of archaeological sites and world
class museums at five identified sites and allocation of ₹2,500 crore for tourism promotion will not only enhance the country’s ranking on the Tourism Competitive Index but will also generate employment opportunities.”

“Also, the development of 100 more airports under UDAN scheme by 2024 and construction of 12 more highways will provide significant boost to the tourism and hospitality sector,” she said.

However, chairman, Indian Institute of Architects (Punjab Chapter), Sanjay Goel, said, “Not much has been announced for architecture and town planning in the budget. However, it is
good that the government has decided to rope in young engineers by providing internship to them in urban local bodies for one year.”