Bangalore: Small-scale industries, which have received some benefits in the Union Budget, have sought more concessions from the State Government in its budget.

"Improving industrial infrastructure, if possible by creating a special fund, uniform rates under VAT (value added tax) in relation to taxes in neighbouring States, and release of tax subsidies before the current fiscal ends are among our main demands,'' Hareesh P. Hegde, President, Karnataka Small-scale Industries Association (KASSIA) told presspersons here on Thursday.

The association conducted a survey of conditions in 15 small industries centres promoted by the Government and found the infrastructure inadequate, Mr. Hegde said. For products from the State to be more competitive with those from other States, they should be brought under VAT under a single tariff, and this will help better capacity utilisation by the units, he added.

KASSIA asked the Government to restore the practice of filing tax returns on an annual basis as quarterly filing of returns for VAT is time consuming; service tax remittances could be made quarterly. Small industries should be allowed self-declaration of purchase of their inputs to make the process simpler.

The threshold limit for the composition scheme under VAT should be increased from Rs. 15 lakhs to Rs. 50 lakh as suggested by the empowered committee of the Government and the rate reduced from 1 per cent to 0.25 per cent of gross turnover, the association said.

KASSIA listed out specific products where taxes need to be brought down on a par with rates in neighbouring States. "From a long-term perspective, the State Government should evolve an exit policy, and promote industrial clusters,'' Mr. Hegde said.

"We have submitted a detailed pre-budget memorandum,'' he said.

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