The Hindu : Tamil Nadu / Coimbatore News : A positive Budget, says SIEMA

Online edition of India's National Newspaper
Tuesday, Mar 01, 2005

Tamil Nadu

Tamil Nadu - Coimbatore

A positive Budget, says SIEMA

By Our Staff Reporter

COIMBATORE, FEB. 28. The Southern India Engineering Manufacturers' Association (SIEMA) has said that the role of Small and Medium Enterprises in the manufacturing sector has been recognised and fillip has been given by forming the Manufacturing Competitive Council, which was announced in the Union Budget-2005 today.

Welcoming the Budget proposals, its president, C.R. Swaminathan, said: "it is a positive Budget which covers all sections of people."

The skill development initiative and upgradation of Industrial Training Institutes are appreciated, he said. However, 108 items had been de-reserved and it had to be studied in detail.

The former president of the association, G. Rajendran, said that the focus on infrastructure development, reduction of peak customs duty on raw materials and implementation of VAT were welcome measures. "The reduction of depreciation in plant and machinery was a discouraging factor."

Disappointing, says CODISSIA

The Coimbatore District Small Industries Association (CODISSA) has said that though it welcomes the increase in Small Scale Industries (SSI) excise exemption limit from Rs. 3 crores to Rs. 4 crores, the absence of increase in basic exemption limit of Rs. 1 crores was "disappointing".

While the Service Tax exemption up to turnover of Rs. 4 lakhs is welcome, it is not sufficient to help the SSIs, the association president, J. Balu, said.

ICCIC seeks exemption

The president of the Indian Chamber of Commerce and Industry (ICCIC), Coimbatore, A. Sakthivel, said that the chamber welcomed announcements on the revision of Income Tax rates and the reduction of customs duty on footwear, etc.

However, he said that the textile exporters should be exempted from VAT.

Innovative measures: CII

The Confederation of Indian Industry (CII), Coimbatore, has said that the Budget had several "innovative and growth-promoting features."

It has shown the Government's commitment to push forward the reform agenda "while taking cognisance of equity considerations and the need to make the growth broadbased and inclusive."

Its chairman, N. Krishnasamaraj, said that the measures announced to reduce tax evasion, though laudable, needed to be reviewed to make them more practical and not obstructive to the ordinary business of a common man.

The secretary of the Tamil Nadu Automobile and Allied Industries Federation, S. Amarjit Singh, described the Budget as a mixed bag "with no unpleasant surprises."

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