Industry bodies of Tamil Nadu today hailed the measures announced in the state's Budget for 2015-16, such as removal of input tax credit reversal and setting up of entrepreneurial and business acceleration centre.
"Confederation of Indian Industry (CII) welcomes the budget. The announcement of withdrawing the input tax credit reversal would make the manufacturing industries more competitive." CII Tamil Nadu, Chairman, S N Eisenhower said.
The budget presented by Chief Minister O Panneerselvam proposed withdrawal of the input tax credit reversal imposed at the rate of three per cent on inter-state sale of goods.
CII has been focusing on entrepreneurship towards promoting
growth and employment across the Southern region, he said.
"The announcement to establish an entrepreneurial and business acceleration centre in public private partnership mode by the Entrepreneurship Development Institute in partnership with CII will be a major step towards promoting of "entrepreneurial culture" in Tamil Nadu", he said.
Madras Chamber of Commerce, Secretary General, K Saraswathi said, the announcements made on VAT and particularly the withdrawal of input tax credit reversal are welcome.
"The manufacturing industry is greatly relieved that the Government has taken note of our concern", she said.
Southern India Chamber of Commerce, one of the oldest Chambers in the country, said the withdrawal of input tax credit reversal imposed was a move in the "right direction".
"The announcement for the creation of an industry investment portal as a single window mechanism for facilitating investors will surely improve the ease of doing business and help bring investments in to the State, SICCI Tamil Nadu, President, Jawahar Vadivelu said.
Southern India Mills' Association Chairman T Rajkumar said the budget did not address the demand of the cotton textile industry.
He said when VAT rate was increased from 4 to five per cent, the weavers and knitters in the state started increasing their volume of cotton yarn purchase from neighbouring States as the CST was only 2 per cent.
The reduction of VAT on cotton and cotton cone yarn from five to two per cent and would fetch more revenue to the government as over 65 per cent of the volume of business was taking place with fabric billing, hank billing and without billing.
Tirupur Exporters Association President A Sakthivel welcomed the decision to unveil special packages to MSME sector with an allocation of Rs 365.91 crore, saying it would help to stimulate and boost the sector.
He also welcomed the allocation of Rs 150 crore for Skill Development and providing training for two lakhs youth will help to the industry which is need of the hour to our industry.
