Jamshedpur : The industries under Adityapur Industrial Area Development Authority have welcomed the proposed cut in corporate tax for MSMEs (Micro Small and Medium Enterprises) as announced by finance minister Arun Jaitley in Budget-2017.
The decision brought cheers among the small and medium manufacturing units of Adityapur, the state’s largest ancillary hub in adjoining Seraikela-Kharsawan district.
The Union budget proposed the tax cut for MSMEs having annual turnover of less than Rs 50 crore to 25 per cent. Currently, a flat rate of 30 per cent corporate tax is levied on the income earned by MSMEs.
Santosh Khaitan a senior functionary of Adityapur Small Industries Association ( ASIA) said that the decision is a welcome move. It will provide a big boost to small and medium enterprises in Adityapur. Over 500 MSMEs would be benefitted. “ The decision will help to make MSMEs competitive globally. It will also bring relief for the industries that were hit because of recession,” he said.
S K Behera, managing director of RSB Transmission (I) Ltd, a RSB Group company based in Adityapur industrial area and chairman of CII’s eastern zone ( MSME) lauded the proposal of corporate tax cut in the budget. ” The Government has taken a right step to ensure growth of MSME sector.
The five per cent tax cut would add to the capital of small and medium manufacturing units. The decision would benefit a sizeable number of units in Adityapur”.
He said that the budget has been planned in a way that industries would also stand to gain because of huge investments in infrastructure especially national highways were an investment of more than Rs 64,000 crore has been proposed.
Bikash Mukherjee, an industrialist and former president of Singhbhum Industries Association opined that it is the new era of reforms of one of India’s complex tax systems that had become mired in layers of exemption and sops over the years, making it difficult to administer.
Owner of a small and medium enterprise Rajiv Sinha said last year’s budget had disappointed us in the absence of any sop for MSME. But, this year the budget brought good news for MSMEs .
Jusco managing director, Ashish Mathur called it is a balanced budget rather than a populist budget with some bold decisions especially in terms of political funding. “I am happy that our state would be getting a world class super specialty health center like AIIMS as this was the pressing need of the hour in Jharkhand”.
Notably, spread over 3,000 acres of land in Adityapur and Gamharia, the Adityapur industrial area under AIADA has already reached its saturation point so far the availability of land is concerned. Over 1,200 industrial units are located here.