Kerala chamber suggests hire & fire labour policy

The Kerala Chamber of Commerce & Industry (KCCI) has urged the Union government to make amendments in the labour and industrial laws with a view to incorporate productivity-linked wages and enabling employers to hire and fire.

In a memorandum submitted to the 12th Finance Commission, KCCI has asked the Centre to allot more funds to improve the progress it has made in sectors such as education, health and infrastructure.

Emphasising that the Kerala government requires these sectors, KCCI lamented that other states, which have misused funds under these heads, are again provided with more allocation.

Pointing out that Kerala contributes substantial amount of foreign exchange by way of commodity exports as well as manpower supply, KCCI felt a reasonable share of the export earnings should be earmarked to the state for the development of infrastructural facilities of export-oriented industries.

"Though this request has been accepted in principle by the Union government a couple of years ago, it appears that no specific allocation has been made for the state on this score," the chamber added.

According to KCCI, the implementation of value-added tax (VAT) was postponed from April 1, 2004, as the business community expressed their concern on the difference in the law and rate from state to state.

KCCI said before implementing VAT tax payers and consumers should be provided with requisite information to enable them to understand the new taxation system.

Emphasising that it is important to follow a uniform framework in terms of basic structure of both law and rates across the states for easy tax administration, KCCI said the Union government should make sure that all the states implement a uniform, simple and transparent VAT with moderate rates all over the nation.

Highlighting that few out of the total 111 public sector units (PSUs) in Kerala are profit-making, the apex body suggested that the state should withdraw from non-core and non-strategic areas.

On the lines of the corporate sector wherein every company is required to present their audited accounts periodically, all the state governments should also prepare and present their balance sheets as well as the income and expenditure accounts every year.

In doing so, states should also follow the double entry book keeping system and adopt the management system with the help of skilled professional managers.