The Micro, Small and medium Enterprises (MSMEs) in Orissa want raising of the excise duty exemption limits for MSMEs to Rs 5 crore from the existing Rs 1.5 crore. They will plead this issue with the 13th Finance Commission, which is currently visiting the state.
MSMEs will also urge the Commission to have a special exemption clause in the proposed goods and services tax (GST).
The Co-ordination Committee of Industries Associations of Orissa (IAO), representing five apex industries associations and chambers of the state, will give a memorandum to the 13th Finance Commission in this regard.
“Orissa is a consuming state and the introduction of GST is going to affect SMEs adversely as the GST will be inclusive of the VAT and excise duty. So we will seek a special exemption clause in the proposed GST system for the small scale units”, Sarat Sahoo, president,Orissa Industries Federation (OIF) said.
This, they point out is more required for the SMEs in a state like Orissa, which suffers a lot due to non-availability of credit, poor infrastructure and a weak marketing link among others. The industry federation will also seek the removal of the anomalies in the system of VAT and adoption of uniform rate of VAT throughout the country.
Among other demands, IAO will plead with the Commission for linking the special grant with the technical education and industrial infrastructure. It will also seek a social security net for the small entrepreneurs, which will provide support in case something unforeseen happens to the entrepreneur. “In case of crisis, there is no one to help the small entrepreneurs, so we will seek a social security net for the small entrepreneurs”, Aswini K Panda, secretary, Orissa Small Scale Industries Association (OSSIA) said.
The IAO will also draw the attention of the Commission for developing a dedicated freight corridor in the east.