The Union Budget 2016-17 has come out with nine thrust areas to enable the country to achieve a sustained growth rate inspite of slow down in the global economy.
Mr.M.Senthilkumar, Chairman, The Southern India Mills’ Association (SIMA) has welcomed the nine pillars of growth trajectory budget marking at developing infrastructure, skill Upgradation, agriculture development (doubling farmers income by 2022), health care, social development, education, etc. The SIMA Chief has also welcomed the nine point agenda to ensure compliance, ease of doing business, curbing black money, providing opportunity for declaring undisclosed income, etc.
With regard to textiles, Mr.Senthilkumar has thanked the Government for continuing optional Cenvat route on cotton textiles which was the main demand of the association. He has expressed his gratitude to the Prime Minister, Finance Minister and the Government for allocating Rs.1480 crores for Technology Upgradation Fund Scheme. He has stated that additional funds would be required to meet the pending subsidies since September 2014. Mr.Senthilkumar has also welcomed the reduction of basic customs duty on MMF from 5% to 2.5% though the association has demanded for total withdrawal. He has stated that reduction in customs duty on MMF would marginally improve the competitiveness of the MMF and their blended textile manufacturers in the country.
Mr.Senthilkumar has opined that the government could have avoided imposing 2% central excise duty without Cenvat credit facility or 12.5% central excise duty with Cenvat credit facility on branded ready-made garments and made-ups materials priced above Rs.1000. He said that as the Central government is expected to implement GST in short while, it could have avoided levy of central excise duty on such items. He has stated that the tariff value of ready-made garments/ made-ups for the purpose of levying central excise duty has been increased from 30% to 60% of the MRP which would marginally increase the cost for the consumers. However, SIMA Chief has thanked the Government for exempting non-branded textile items below the value of Rs.1000 from the purview of excise duty which would benefit the people below the poverty line.
Mr.Senthilkumar while commenting on the various benefits extended for the skill development and job creation in the nation, has hailed EPF benefit of 8.33% extended for the new entrants in the EPF. He has stated that this would significantly improve the compliance and also ensure social security of the employees. SIMA Chief has also appreciated the enhancement of limit of House Rent Allowance from Rs.24,000/- to Rs.60,000/- which would benefit the salaried class.