Budget fails to cheer industrialists

Shivani Bhakoo

Tribune News Service

Ludhiana, February 1

The Union Budget 2018 has failed to impress the industrialists here.

Terming it “anti-industry” and “anti-economy”, industrialists felt that Finance Minister Arun Jaitley “neglected” the industry. Most of them felt that the MSME sector had hoped too much from the Union Finance Minister, but their hopes were dashed.

The Federation of Punjab Small Industries’ Association termed the Union Budget for 2018-19 a damp squib.

Badish K Jindal, president of FOPSIA, said: “The revenue deficit is on the highest side with a figure of Rs4,38,877 crore, which is the highest in past five years, which stands at 2.6 per cent. The fiscal deficit is Rs5,94,849 crore, which stands at 3.5 per cent of the GDP. The government merely allocated Rs6,552 crore for 2018-19 as compared to Rs6,481 crore last year to the ministry of MSME, which is shocking. The fact remains that the MSME contributes 40 per cent of manufacturing and 45 per cent of exports in India. This increase is even less than the increase in salaries of officials of the department. The allocation to the ministry of skill development is merely Rs3,400 crore, which clearly shows the vision of the government towards Skill India Mission.”

He said the Budget mainly focused on 2019 elections and the biggest announcement was made in the form of health cover of 5 lakh per house hold to 10 crore families. “Whereas, with the deficit of 3.5 per cent, it is impossible to run such costly scheme,” Jindal said.

Narinder Bhamra, president Fasteners Manufacturers’ Association of India, said the industry was “disappointed” with this Budget as no relief was given as far as direct taxes were concerned. “We were expecting enhancement in income tax limit up to Rs5 lakh but it remained the same at Rs2.5 lakh in spite of the fact that the government got Rs90,000 crore extra income tax and there was an increase of 19.25 per cent tax payers. On the contrary, extra burden of tax payment was imposed in the form of increase in cess on income tax from 3 to 4 per cent. The government brought GST in line with other countries, but other countries are providing social security to its citizens. The government is only concerned about collecting taxes from the MSMEs and not about providing us social security or extending any benefit. It is a general feeling that the government just wants to benefit the corporate and lure farmers ahead of the elections going to take place next year,” said Bhamra, adding that there was a big disappointment for the MSMEs and we should shut down our factories and start cultivation.

Taxation lawyer Jatinder Khurana here said the government had not increased the tax rebate in the Budget, while inflation had gone up manifold and had brought disappointment among tax-payers. The government had increased the cess to 4 per cent, it will be an additional burden on the genuine tax-payer.

On the other hand, Ashok Juneja, Vice-President, Punjab Tax Bar Association, and Upkar Singh, president CICU, in a joint statement said the overall Budget was beneficial for the economic development since it covered the progress of infrastructural development of agriculture, housing, defense, railways, smart cities, tourism etc. “Fiscal deficit is decreasing every year and from 4.4 per cent in 2014, it has come down to 3.5 per cent in 2017-18 showing progress of the country. Economy is moving from black board to digital board. Relief given to the corporate sector now to pay 25 per cent tax up to a turnover of Rs250 crore in place of 30 per cent is also good. At the same time, there is no relief in tax exemption or in reducing tax rates,” they said.

Ajit Lakra, a knitting and garment manufacturer here, said: “The Modi government has pleased the poor and women. Still, the benefits would be given in the long run. As far as the industry is concerned, there is nothing good and it has been totally neglected.”

OPPNSPEAK

The Budget was totally disappointing for common man. The IT slab has not been enhanced and 10% long term capital gain tax has been imposed. The youth feels cheated as only 70 lakh jobs were given jobs. —Darshan Shankar, AAP spokesperson

They backstabbed the beleaguered farmers and overlooked the issues of the peasantry. The Budget will hit the common man by unleashing fresh inflationary trends, thus resulting in sky-rocketing prices of consumer goods, besides adversely impacting the middle class, which, far from receiving any income tax relief had been burdened with cess. —Sunil Jakhar, PPCC chief

TRADERS SPEAK

The government merely allocated Rs 6,552 cr  for 2018-19 as compared to Rs 6,481 cr last year to the ministry of MSME, which is shocking. The fact remains that the MSME contributes 40% of manufacturing and 45% of exports in India. This increase is even less than the increase in salaries of officials of the department. —Badish K Jindal, president, fopsia

We were expecting enhancement in income tax limit up to Rs 5 lakh as the government got Rs 90,000 cr extra income tax and there was an  increase of 19.25 per cent tax payers. The government is only concerned about collecting taxes from the MSMEs and not about providing us social security or extending any benefit. —Narinder Bhamra, president, fasteners manufacturers’ association of india

The Modi government has pleased the poor and women. Still, the benefits would be given in the long run. As far as the industry is concerned, there is nothing good and it has been totally neglected. —Ajit Lakra, a knitting and garment manufacturer 

Fiscal deficit is decreasing every year and from 4.4 per cent in 2014, it has come down to 3.5 per cent in 2017-18 showing progress of the country. Economy is moving from black board to digital board. Relief given to the corporate sector now to pay 25 per cent tax up to a turnover of Rs 250 crore in place of 30 per cent is also good. At the same time, there is no relief in tax exemption or in reducing tax rates. —Upkar Singh, president cicu

The government has not increased the tax rebate in the Budget, while inflation has gone up manifold and brought disappointment among tax-payers. The government had increased the cess to 4 per cent, which will be an additional burden on the genuine tax-payer. —Jatinder Khurana, taxation lawyer