Karnataka Small Scale Industries Association (KASSIA) has urged Chief Minister Siddaramaiah to earmark Rs 5,000 crore in the next budget for the development of industry in the state.

KASSIA President V K Dixit made this demand at the pre-budget meeting Siddaramaiah held with trade and industry bodies. He also demanded Rs 1,000 crore for upgradation of the existing industrial estates and handing them over to the local associations to manage them as townships.

Stating that the 14.5 per cent VAT being imposed by the state government was hampering SMEs in defence sector procurement, he urged the tax be made on par with neighbouring states, which is 5.5 per cent.

Members of Karnataka Chamber of Commerce and Industries (FKCCI), led by its Chairman Tallam Dwarakanath, who were also present, demanded abolition of trade licensing system for all Micro, Small and Medium Enterprises and other business entrepreneurs.

“Recently, the government had removed the trade licensing system for SMEs within the jurisdiction of corporations and municipalities. We want this to be extended throughout the state,” Dwarakanath said.

This apart, FKCCI also urged the government to reduce VAT rates to 5 per cent and 14 per cent from the existing 5.5 per cent and 14.5 per cent while reminding the CM of his promise to do so in the previous budget.

FKCCI also demanded the government to drop the proposed increase in guidance value of properties by 10 to 30 per cent.

The industry bodies also drew Siddaramaiah’s attention to going back to the policy of allotting industrial plots which are less than two acres on lease-cum-sale basis.

“The new policy of giving plots on a 99-year lease has affected growth of the small-scale sector in the state,” they argued.

Siddaramaiah, who is also the finance minister, assured the industry representatives that he will try to incorporate all their demands in his budget which is likely to be presented on March 18.

Source: The New Indian Express