Ludhiana: Businessmen express concern over falling profits

LUDHIANA: In the wake of increasing recession, representatives of Federation of Ludhiana Trade and Industrial Associations (LTIA) organised a meeting at Sutlej Club. The businessmen discussed the problems being faced by them in various government departments and measures in which various matters concerning the industry were discussed. The businessmen expressed concern over the increasing cost of production and constant fall in their profits and also urged the government to take necessary action at the earliest so as to prevent any further losses to the businessmen.
Giving more information, Tarun Jain Bawa, president of LTIA, said, “The progress of Micro Small and Medium Enterprises (MSME) sector industrial units has been derailed in the country and currently continuous fall is being registered in the growth of MSMEs, specially those based in Ludhiana. What is even more worse that our cost of production is rising with each passing day while profits are falling due to increasing competition and other factors. Several factors like high rate of power, pending tax refunds, rising cost of labour in Punjab are responsible for the current situation. Be it state or centre government, both should realise that the MSME industry is passing through the worst-ever phase and all necessary steps should be taken by them to ensure that all our problems are solved at the earliest.”
Bawa also added, “The central government rather than continuing with taxes like GST or income tax should consider rolling out an alternative like transaction tax on every cash transaction over Rs 5,000. This will not only increase government's revenue but will also lead to counter the problem of tax evasion in India. A voluntary disclosure scheme for income tax too should be brought by the government before implementing this transaction tax. In addition to this, the government should also bring out new subsidies and rebates for the MSME units, especially for garment manufacturers.”
According to prominent garment industry businessman Darshan Dawar, president of Knitwear Club, “Introduction of transaction tax is the best alternative for India’s economy and for industry as well. Coming to our problems, it’s been three years now since the Congress came into power in Punjab, but till now its promise of providing power at Rs 5 per unit has not been fulfilled by this government. We urge the government to act before its too late and power rates should be reduced to Rs 5 per unit retrospectively. Corruption in the state and central government departments is one of the biggest hurdle in the progress of industry and both governments need to do something about this evil, only then the industry will move in the right direction.”