Bangalore, October 09, 2013: A high powered delegation lead by Mr. R. Shivakumar, President, FKCCI, Mr. B.T. Manohar, Chairman, State Taxes Committee, FKCCI and Mr. Sudarshan Tirunarayan, Secretary General, FKCCI, at its meeting with the Chief Minister sought relief in the areas of VAT, Trade License and problems faced by MSME/SMEs in the State.
Mr.R.Shivakumar stated that presently the rate of taxes for VAT charged at 14.5% is too high and it has become uneconomical for the industries to operate in the state. The reduction as promised in the Budget 2013-14 should be adhered to by reducing to the pre-tax levels of 14% and 5%. He also stressed that the target collection of the taxes will be easily met resulting in a surplus of around Rs.800 crores during the fiscal year. Also he said that the Federation is addressing issues on new registrations in the Taluk levels for higher tax collections and the process has already been put in motion.
On the issue of the abolition of Trade License under the KMC Act, Mr.R.Shivakumar stressed the fact that the industry needs to be exempted from the Trade License Act as the units are covered under various statutory laws. The Trade License is causing unnecessary burden and leading to financial stress on the business community along with the process of renewals.
Mr.R.Shivakumar also stated that the MSME/SMEs are on the verge of closure due to lack of skilled manpower, high interest burdens, outdated technology and lack of availability of start up funds for the new ventures and sought the help of the Government for establishment of a separate Cell on MSME/SMEs. This step by the Government will boost the economy of the State greatly.
It is also submitted that there will be FKCCI participation in the proposed Meet at Chamrajnagar for the development of the District to attract other State investors in the District. It is suggested to develop a Turmeric Park.
Hon’ble Chief Minister assured the Delegation that he will study and consider the suggestions favourably and a meeting will be called for further hearing shortly. — CCI Newswire
