JAIPUR: As part of the pre-Budget consultation meetings, chief minister Ashok Gehlot on Friday took suggestions and feedback from the industry members. They sought tax relief and policy intervention to end legacy disputes that would free up locked funds for MSMEs.
In the virtual meeting which was joined by industries minister Prasadilal Meena, power minister BD Kalla and senior officials from the finance department, Gehlot said that Covid has affected the financial condition of the state. However, the government will try to present a Budget which is growth-oriented and will bring in investments, he added.
While the Rajasthan Energy Regulatory Commission’s draft guidelines for rooftop solar industry became a common issue for industry bodies who wanted CM’s intervention, the representatives also drew attention to high electricity charges, pending dues of MSMEs, labour cess and violation of Purchase Preference Policy norms.
In its recommendations, CII-Rajasthan said all government and large-scale units should follow the MSME Act for payment within 45 days. It said there was a finance department notification giving directions to departments to pay pending payments in next 15 days and to report to it by July 6. Still most of the payments are stuck.
It said refund of around Rs 2,000 crore to MSMEs is stuck because they cannot get said ‘C’ forms of previous years from their buyers like government department and companies. “Finalisation of old cases of sales tax regime are not closed and their receivables are stuck,” it added.
The items which are produced in Rajasthan must be purchased by government organisations on priority under the Purchase Preference Policy but some departments are not following, it said.
On labour cess it said there was lack of awareness of this Act, now the government should bring an amnesty scheme to help the industry clear the dues and the government will also get the funds. FICCI said that tourism was declared an industry in 1989 but all the facilities such as electricity charges, water charges, urban development taxes, allotment of land, conversion charges, etc. are still being done at commercial rates.
It said for lockdown period, the government should waive the fixed electricity charges and consider actual working days’ consumption of electricity for calculating the load factor.
Rajasthan Khadya Padarth Vyapar Sangh president Babulal Gupta said that the government should reduce mandi tax to 0.50% from the current 1.60% and also the farmer welfare cess of 1% should be scrapped because the effective tax rate goes up to 2.60%.
FORTI executive president Arun Agarwal said that RIICO should allow more space commercial ventures in its industrial areas like Delhi and Haryana. Agarwal said, “Now, many of the industrial areas have come within the city limits. Given the situation, more are for services industry and should be allowed in industrial zones.”