TANSTIA's Appeal To PM
The Tamil Nadu Small and Tiny Industries Association (TANSTIA) has appealed to the Prime Minister to make it mandatory for all public Sector Undertakings and Government agencies to procure 50 per cent of their needs from micro and small-scale units. In a memorandum to the Prime Minister, the association president D. Gandhi Kumar said that due to the global financial crisis a large number of micro and small units were hit in the State. Multi-national companies and large-scale industries had reduced their purchase from the smaller units. At this juncture, the Government should support the micro and small units in marketing. He said a single labour welfare organisation should be established. On the taxation front, the micro and small-scale units should be exempted from the Fringe Benefit Tax and service tax on works (contract labour). If the profit earned by these units was invested back for expansion or modernisation, then it should be exempted from Income Tax.
The goods and services produced by these units should be covered under single taxation. The semi-mechanised match industry should be granted central excise duty exemption. The interest rates and bank charges for the micro and small units should be reduced. They should have a moratorium on the repayment of the principle loan amount and the interest for this period should be waived. Sanctions for proposals should be expedited.
