BANGALORE: In a pre-budget memorandum submitted to the Chief Minister, Karnataka Small Scale Industries Association (KASSIA) has asked for reduction in rate of tax from 14 per cent to 2 per cent local procurement by Railways and government bodies.
Addressing a press conference on Tuesday, KASSIA president Prakash Raikar said, “Almost `10,000 crore of purchases are made by ESCOM’s, KSRTC and other bodies. Our state’s small scale industries have to bear a 12 per cent tax difference as additional costs and so lose competitive edge while bidding for government tenders.”
KASSIA is also asking for the establishment of the post of Development Commissioner and Secretariat for small and medium industries amongst other demands like a 15 per cent purchase and price preference in the government’s procurement policy.
“Since industries are already governed by many acts like the MSMED, Factories Act, Shops and Establishment Act, ESI and PF acts, the insistence on trade license for industries is an anomaly,” added Raikar. Another demand by KASSIA was the enhancement of the current limit of e-sugam for each batch from `20,000 to `1 lakh. “Many products will not need e-sugam if this is done,” said Raikar.