FASII: Union Budget 2013-2014 damp squib

Ludhiana, February 28, 2013: Reacting to the Union Budget for next fiscal, Badish Jindal, National President, Federation of Associations of Small Industries, India (FASII) has said on the whole, Union Budget 2013-2014 is a damp squib.

In a statement here on Thursday, he added it is a crushing disappointment to the Micro and Small Enterprises (MSEs) sector that the Union Budget 2013-14 has not offered anything concrete to this sector on the taxation front. At a time of recession, the MSEs hoped that measure like excise duty cut,

concessional interest etc would be announced as in the year 2008. The Finance Minister on the other hand has belied the hope of the sector.

Jindal said no word has emanated from the Finance Minister about enhancing the Central Excise Exemption Limit for this sector from the present limit of Rs.1.5 crores and the service tax exemption limit from the present limit of Rs.10 lakhs. Keeping in view, the skyrocketing prices of all commodities, a decision in this regard is, in fact, pending for quite long.

Further, he said similarly the Micro and the Small Enterprises(MSE) sector hoped that the main irritant of “Delayed Payments” to this sector by large industries, MNCs, Public Sector Undertakings and Government

Departments would be addressed in this Budget by slotting-in an appropriate provision in the Income Tax Act. The sector, however, got dismayed that nothing had been done on this count.

However, he said the “zero excise duty route” has been restored for readymade garment industry of cotton and man-made sector. This, indeed, is a welcome step. FASII also welcomes excise exemption given to hand-made carpets and textile floor coverings made of coir and jute.

Regarding the increased allocations provided to SIDBI and allocations made for Credit Guarantee Fund towards Factoring and Tool Rooms and  Technology Development Centres, he said these are meagre. These areas need double the funds of what is allocated.