SIMA hails Budget 2018-19

P Nataraj, Chairman of the Southern India Mills’ Association (SIMA) has welcomed the increased allocation of Rs 7,148 crore that includes Rs 2,300 crore for Amended Technology Upgradation Fund (TUF) scheme and the balance for other schemes as against Rs 6,251 crore allocated during last year. “Extending 12 per cent EPF employer’s contribution for the first three years of employment and also the fixed-term employment for all the sectors of the industry would encourage job creation in the textile industry,” says Nataraj.

SIMA Chairman has also welcomed the scheme for MSMEs to address the issues relating to NPA norms and stressed assets, a long pending demand from the industry. He has also welcomed the reduction of corporate tax rate from 30 per cent to 25 per cent for the units having up to Rs 250 crore annual turnover. He has stated that more than 80 per cent of the textile units would be benefited out of the reduced corporate tax rate that would help them to plough back the amount for creating additional jobs and value addition.

P Nataraj has stated that the Union Budget has allocated R 2,164 crore for eemission of State Levies (RoSL) as against Rs 1,855 crore allotted last year for the exports of garments and made-ups. He said that the amount is inadequate as there is huge backlog even for the year 2017. He has pointed out that timely disbursement of government dues is very much essential to ensure adequacy in working capital and achieve a sustained growth rate in exports and job creations. He has appealed the government to clear the long pending RoSL benefits, IGST refund and other dues at the earliest to ease the financial position of the exporters.