E-Paper
CII suggests steps to achieve 12% growth rate
CII has demanded enactment of Small Enterprises Development Bill and deadline for VAT implementation in its scheme of things to attain 12% growth rate.
To put the country on a 12 per cent growth trajectory and increase the share of small industries beyond seven per cent of the national economy, CII on Sunday demanded speedy formulation of Small Enterprises Development Bill and undertaking tax reforms along with fixing a deadline for Value Added Tax (VAT) implementation.
"To meet the international competition in a planned, phased and a time-bound manner, the small industry outlook has to be more global. It was essential to attain the growth rate of 12 per cent and increase the GDP contribution of small industry to the national economy beyond seven per cent," the Chamber said in a pre-Budget memorandum to the Government.
The Confederation of Indian Industry also strongly advocated enactment and implementation of the Enterprises Development Bill, saying it would simplify the day-to-day operations of a small enterprise.
Lamenting the slow pace in implementing VAT and the resultant setback for fiscal reforms and competitiveness, the industry chamber said that a target date should be fixed, not beyond April 1, 2005, for its introduction.
Urging the Government to reduce corporate tax from 35 to 30 per cent and removal of 2.5 per cent surcharge, CII mooted 15 per cent additional depreciation for increasing capacity by 10 per cent or more and extending time-limit and applicability for availing research and development deduction to all sectors among others.
The corpus thus created, the Chamber said, be immediately made operational through SIDBI and benefit the industry across the spectra.
CII also wanted commercial banks to extend credit facility to the small industry at a comparatively lower rate of interest than the Prime Lending Rate (PLR).
Other issues raised in the memorandum to the Finance Minister P Chidambaram were newer avenues for financing the small industry, technology bank, credit rating and credit guarantee, promoting micro-financing, restructuring of State Financial Corporations (SFCs), securitisation of debts, among others.
