SSIs want creation of Infrastructure Development Fund
Bangalore, Mar 2 (UNI) Karnataka Small Scale Industries Association (KASSIA) today urged the state government to set apart Rs 500 crore in coming Budget for creation of an Infrastructure Development Fund to develop industrial estates and clusters in the state.
Talking to newspersons here, Association President Hareesh P Hegde said ''Sorting out infrastructure deficiency on a warfooting is the need of the hour.'' He said that during a pre-budget consultation meeting convened yesterday by Deputy Chief Minister B S Yediyurappa, also holding the Finance portfolio, it was urged to bring the products of the small scale industries (SSIs) under Value Added Tax (VAT) with a single tariff. ''It will minimise clssification issues and render greater ease and flexibility for diversification of SSI units. This will also increase capacity utilisation which will scale up the taxation revenue to the government,'' he explained.
Mr Hegde informed that Mr Yediyurappa had promised to release Rs 100 crore soon towards clearing subsidy dues of Rs 240 crore following the Association's request to settle the entire subsidy due within one year.
The Association also urged the government to make necessary provision in the Budget for building a e-network to get information about international marketing to help SSIs. ''In a globalised era, the network will certainly help small entrepreneurs to known about world market trends and the demand for their products,'' he explained.
Association General Secretary M C Dinesh, who was also present, urged the State Government to introduce uniform tax rate under VAT since the variation affected marketing of products. Citing an instance, he said while Karnataka imposed 12.5 per cent VAT on tractor tyres and tubes, neighbouring Maharashtra and Andhra Pradesh charged only four per cent.
He also wanted the government to reduce the VAT on surgical gloves and school bags from the present 12.5 per cent to four per cent.
UNI MSP RG SB1327