The Mangaluru-based Canara Plastic Manufacturers and Traders’ Association (CPMTA) has urged the Union Government to increase the central excise exemption limit in the forthcoming Budget.
BA Nazeer, president of the association, said that the Budget should initiate steps to enhance the central excise exemption limit to ₹5 crore from the present level of ₹1.5 crore.
He said the ₹1.5-crore limit was fixed in 2007. Because of inflation, the prices of plastic, rubber and other raw materials have gone up very steeply.
Such a move would help enhance the competitiveness of MSMEs (micro, small and medium enterprises) to face the challenges of Chinese onslaught, he said.
Stressing the need for the introduction of GST (Goods and Services Tax), Nazeer said GST is expected to replace all the indirect taxes in the country. With GST, taxes such as central excise duty, and service tax would disappear and payment of taxes for SMEs would become very simple. GST is also expected to increase tax compliance.
A press release by the association said that MSMEs had been given a special focus in the poll manifesto of BJP. The party had stated in its manifesto that the role of SME sector is crucial for the economic development of the country, it added.