Southern States - Tamil Nadu

SSIs hail budget, trade and working class assail it

By Our Staff Reporter

CHENNAI March 28. Barring small scale industries which ``whole-heartedly'' welcomed the State budget, the proposals came in for sharp attack from sections of trade and working class.

Led by the Tamil Nadu Small and Tiny Industries Association (TANSTIA), organisations espousing the cause of the sector hailed the proposals as ``pro-SSIs''.

The TANSTIA president, A. Selvaraj, said the levy of an entry tax on HDPE granules, PVC pipes, sanitary wares, HDPE/PP woven fabrics and paperboards would assist the local units in getting a better competitive edge. The four per cent tax on products sold to government departments and undertakings would ``help the marketability of SSI products''.

The National Confederation of Small Industry president, M.S. Parthasarathy, hailed the proposal to issue a provisional SSI certificate `online'.

Welcoming the sales tax concession for the sector, the Ambattur Industrial Estate Manufacturers' Association president, L. Leela Krishna, called for streamlining of the delivery systems ``to make this fruitful''.

The Industrial and Financial Reconstruction Association for Small and Tiny Enterprises president, DE. Ramakrishnan, said online registration of small and tiny units would help in creation of a database of sick units which, in turn, could be used for framing a comprehensive sick, revival and rehabilitation policy for them.

While the Industrial Estate Manufacturers' Association and the Small Industries and Business Entrepreneurs' Association felt that the proposals would spur growth in the sector, the Small Electrical Equipment Manufacturers Association president, Dilip Kumbhat, said reintroduction of a surcharge on sales tax would again complicate the accounting system.

The Andhra Chamber of Commerce president, C. Venkatachalam, said adoption of the revenue neutral rate of 12 per cent or more for most of the goods taxed at eight and 12 per cent would adversely affect industries and consumers.

Further, the inclusion of 15 more items under the entry tax schedule would push up the cost of the products, leading to flight of trade.

Appealing for a review of the sales tax hike on drugs and medicines and pleading against the levy of additional sales tax on second sale of the products, the Madras Pharmaceutical Wholesalers' Association secretary, Ramesh Bhandari, said the move would otherwise affect the common man.

Terming the new levies anti-poor, the State units of both the AITUC and the CITU, criticised the budget for the absence of any measures to benefit labour.

The Tamil Nadu Vanigar Sangankalin Peravai president, T. Vellaiyan, expressed concern that reverting to the multi-point taxation structure and the levy of a surcharge would lead to harassment of the trade, especially small traders.

Ryots disappointed

Terming the budget a major disappointment to agriculturists, the TN Vavasayigal Sangam said the proposal to hand over wasteland to private parties would seriously affect the farming community.

The TN Government Employees' Association, the TN Government Employees Union and the TN Aasiriyar Kootani expressed disappointment that there was no proposal to benefit the employees.

The moves to reduce workforce, introduce a voluntary retirement scheme, the freeze on government block grants to educational institutions and disinvestment of state-owned entities should be reviewed.

The TN Government Officials Union, the TN Arasu Aluvalar Kazhagam (C and D Group), the TN Secretariat Association, the TN Town Panchayat Executive Officers' Association and the TN Education Department Employees Staff Association hailed the budget proposals.

The Indian Association of Tour Operators chairman, C. Nagendra Prasad, said the budget had no proposal to promote tourism.

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