Karnataka trade and industry seek e-governance in stages

Karnataka trade and industry representatives have urged the State Government to introduce e-governance in all the departments in stages.

During the pre-budget meeting with the Chief Minister, the representatives pointed out that e-governance helps in simplifying tax reforms and leads to procedural compliance.

FKCCI

In a memorandum, FKCCI said there is a need to augment the power in generation, transmission and distribution. In this connection, KPCL should speed up setting of 700MW Bidadi Gas Plant.

Further necessary assistance should be given for completion of laying the gas pipeline from Magadi to Bidadi. Also KPCL should finalise MoU for the supply of gas to the Bidadi Plant.

“It is heartening to note that additional power to the extent of 2500MW is being added to the existing 6500MW by KPCL with the setting up of two units of 800MW at Raichur and 700MWat Bellary. However energy sector will be affected by the increased subsidy being granted to the IP sets. The cost of about Rs. 5,000 crore being the subsidy cost will affect the overall financial position of the State. Hence it is necessary to remedy the situation by the following,”

FKCCI has urged the chief minister to encourage Private Public Partnership (PPP) in developing industrial estates providing at least 1,000 readymade sheds for MSMEs. Skill training centres in all industrial sectors should be given priority.

Also make provision of tax concession for goods procured and traded within Karnataka and outstanding subsidies with Central/State Government to be considered as Bank Guarantee against Credit Facility.

K Shiva Shanmugam, president FKCCI said the state government should create industrial corridors between Doddballapur and Chikballapur, Chikkballapur and Devanahalli, Hubli and Dharwad, Mysore and Hassan, Mysore and Bangalore and Hoskote and Kolar.

“The government should also explore to create a ‘New Bangalore’ in the outskirts of the City with all modern amenities to attract industries. Also explore to create an International Airport Hub at Bangalore for connectivity between the countries to the East of India to the Countries in the west of India,” he added.

BCIC

The Bangalore Chamber of Industry and Commerce (BCIC) has sought that Stamp duty should be brought under the VAT principle and also the immediate withdrawal of 0.5 per cent increase in the Value Added Tax (VAT) rates from 5 to 5.5 per cent and to 14 to 14.5 per cent effective from August 1, 2012.

K.R. Girish, former President, BCIC said: “Providing of set-off of stamp duty paid in respect of the immovable properties under the VAT principle in the real estate sector is a novel method and if implemented would be the first of its kind in the country.”

He further added: “The Value Added Tax rates should be restored to pre-hike level of 5 percent and 14 percent in respect of all commodities. With specific reference to ATF, we seek a reduction of tax to not more than 20 percent from the existing level of 28 percent. We also strongly demand exemption of entry tax on machinery or at least a reduction in the rate of tax to 1 percent from the existing level of 2 percent. We also seek exemption from payment of VAT on industrial canteens and on hybrid vehicles.”

The Chamber also highlighted that litigations have resulted in blockage of huge working capital for the industry by way of pre-deposits of 50 percent of the disputed taxes and other amounts or leading to coercive recovery action by the State.

P V Srinivasan, Chairman, Indirect and State Taxes Expert Committee, BCIC said: “The Chamber suggested that there should not be any pre-deposit at the first appeal stage, while the pre-deposit can be maintained at 25 percent at the second appeal stage.”

anil.u@thehindu.co.in

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