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Tamil Nadu
Engg body for service tax hike roll-back
Our Burea
Moving path
Push to textile and automobile industries hailed.
No TUF for foundry `disappointing'
Coimbatore
,
March 1
The Southern India Engineering Manufacturers' Association (SIEMA) has sought a roll-back of the increase in service tax announced in the latest Budget, as it would hit the common man. It also expressed dismay over the fact that there was no mention about labour reform.
In a statement, Mr C.R. Swaminathan, President, SIEMA, expressed satisfaction that the excise duty has not been increased from the present 8 per cent. The gesture of extending short-term farm loan at 7 per cent interest was also a positive development.
Though he welcomed the proposals to give a push to textile and automobile industries, he was disappointed about not extending a scheme similar to the Technology Upgradation Fund (TUF) scheme for the textile industry, to the foundry sector. He noted that there were no positive steps for power reforms and the Union Finance Minister did not make any reference to the labour reforms.
Mr Swaminathan objected to the 2 per cent increase in service tax and feared that it would hit the industry hard. The extension of service tax to essentials like ATMs would affect the common man and he requested the Minister to roll back the increase in service tax. The 5 per cent customs duty on imported scrap should be withdrawn.
Mr J. Balu, President, Coimbatore District Small Industries Association (Codissia), said the Budget had skipped addressing the requirements of the SSIs to remain competitive in the liberalised era and he felt that it would hit employment generation. There were no incentives to the manufacturing sector that was facing competition due to globalisation and the increase in service tax would erode the competitiveness of the SSIs.
He, however, welcomed the proposals to reduce excise duty on man-made fibres and plastic, and customs duty on non-ferrous metal and ferro alloys.
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