Reaction of FICO on Budget 2025-26

Ludhiana, January 1, 2025: Federation of Industrial & Commercial Organization (FICO) welcomed the Revision of Income Tax Slab and Exempted Income up to 12 Lakh for individuals. Also, FICO welcomed the revision in the Definitions of MSMEs. 

K. K. Seth Chairman FICO said that the long term pending industry demand was to Rationalize the Taxation Slabs for the Industry, as the Income Tax for Private Limited/ Public Limited companies is capped to a maximum of 25%, whereas The Partnership Firms, & Proprietorship firms are capped at 30%, which does not provide a level playing field to the Corporates and small industries. We are disappointed that the Rationalization of Income Tax has not been done in this budget too.  

Gurmeet Singh Kular President FICO shared his observations & welcomed the decision to revise the Definition of MSMEs, but the Credit Link Capital Subsidy Scheme was introduced to facilitate technology up-gradation in MSMEs by providing an upfront capital subsidy of 15 per cent (on institutional finance of up to Rs.1 crore availed by them) for induction of well-established and improved technology. Government of India has suspended the scheme. It was demanded that Credit Link Capital Subsidy Scheme should be made permanent with the upper limit of finance available extended up to Rs. 5 Crores, and the subsidy of 15% also needs to be revised to 25% and facilitate the industry. But unfortunately, nothing has been done. 

Baldev Singh Amar Vice President FICO said that there should have been freight subsidy introduced for the north Indian exporters who have been far away from the seaports so that they should also be able to maintain competitiveness with those who are located near to the seaports. Punjab is a landlocked state very far from the Seaport as well as far from the Iron and Steel Plants in Central India, a special freight equalization subsidy should be introduced to the northern states of India. But Nothing has been done regarding the same. 

Manjinder Singh Sachdeva General Secretary FICO said that No Special Package for the Bicycle Industry has been introduced even though India is the 2nd Largest Bicycle manufacturer in the World, after China. The Bicycle Sector needs special attention from the government to flourish. So, that the Bicycle Industry can upgrade itself to compete with the world & to become India's largest manufacturer of Bicycles in the World.

Ashpreet Singh Sahni Organizing Secretary FICO said that the International Cooperation Scheme should have been introduced to enable the MSMEs to visit in the International Exhibitions and see the Global Manufacturing Excellence so that they can improve their own productivity.