In a press release issued yesterday, Mr.P.Nataraj, Chairman, The Southern India Mills’ Association (SIMA) has welcomed the increased allocation of Rs.7,148 crores that includes Rs.2,300 crores for Amended Technology Upgradation Fund Scheme and the balance for other schemes as against Rs.6,251 crores allocated during last year.
Extending 12% EPF employer’s contribution for the first three years of employment and also the fixed term employment for all the sectors of the industry would encourage job creation in the textile industry says, Mr.Nataraj. The Chairman has also welcomed the scheme for MSMEs to address the issues relating to NPA norms and stressed assets, a long pending demand from the industry. He has also welcomed the reduction of corporate tax rate from 30% to 25% for the units having upto Rs.250 crores annual turnover. He has stated that more than 80% of the textile units would be benefited out of the reduced corporate tax rate that would help them to plough back the amount for creating additional jobs and value addition.
Mr.Nataraj has stated that the Union Budget has allocated Rs.2,164 crores for Remission of State Levies (RoSL) as against Rs.1,855 crores allotted last year for the exports of garments and made-ups. He has said that the amount is inadequate as there is huge backlog even for the year 2017. He has pointed out that timely disbursement of government dues is very much essential to ensure adequacy in working capital and achieve a sustained growth rate in exports and job creations. He has appealed to the Government to clear the long pending RoSL benefits, IGST refund and other dues at the earliest to ease the financial position of the exporters.