Coimbatore small units content with Budget

The Union Budget 2010-11 has brought cheer among industry representatives in Coimbatore and small-scale units in the region, with some prominent steps being taken by the Union finance minister, Pranab Mukherjee. Clear growth-oriented focus provided by the Budget has largely been hailed by the industry players as well as the Coimbatore District Small Industries Association (CODISSIA).

Thumbs up to budgetary proposals

Although small industrial units in Coimbatore and representatives feel that most of the demands as made by them have not been considered in the Budget, it still holds good for the SME sector in the region as it provides an impressive direction, especially in terms of tax collection and money spent.

Clear focus of the Budget on infrastructure development and inclusive growth has been applauded. Mr Mukherjee's budgetary proposal to implement the new Direct Tax Code (DTC) and goods and services tax (GST) from 2010-11 is also being considered as a positive step.

"Budget initiatives such as implementation of DTC and GST as well as raising the income tax slabs have been especially praiseworthy as these measures are expected to provide a clear direction and relief to tax payers," said V Bang, proprietor of Marble World, a small-sized marble supplier in Coimbatore, Tamil Nadu.

However, while appreciating the finance minister for initiating key budget measures, industry representatives in Coimbatore have also expressed apprehensions about the frequent tinkering with tax laws and called for stable tax regime.

"Stable tax rules will help small-scale units to understand the tax structure and comply with it and a strong indirect tax administration system would also improve their delivery mechanism," said A Banerjee, senior analyst at SKP Securities, a small-sized trading and brokerage firm in Kolkata.

Overall, proposals in Budget 2010-11 are on the expected lines, with the absence of major ‘surprises', thereby giving a reason for celebration to industry players in Coimbatore.

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David Parks is a well known author and has written articles on Jewellery Manufacturers and Processing Machinery, suppliers, Manufactures and many other subjects.