Ludhiana, July 13, 2014: Federation of Industrial and Commercial Organisations (FICO) president Gurmeet Singh Kular has submitted a representation Punjab chief minister Parkash Singh Badal has stated that as trends of the global market is changing very fast and the industry has to keep themselves upgraded “we request you to give Technology Up-gradation Fund(TUF) scheme for bicycle industry as in the case of textile industry, so that we can upgrade our technology with changing time and increase our market share in global market”.
He has also stated that bicycle being the “poor man’s luxury vehicle” plays very important role in price. As complete bicycle attracts the central excise duty of 2% the price is increased by Rs.50 on basic cycle which directly hits the poor man’s pocket. “It is our humble submission that central excise on complete bicycle should be abolished to save the masses. Moreover no refund of central excise duty is given where as central excise of 12.36% is been given on the raw material used the bicycle industry. Our industries are becoming un-competitive in International market and are losing valuable foreign exchange for the country.”
Regarding import duty on bicycle and parts, he has stated that “as Ludhiana is the base of bicycle industry which requires your main attention. This industry gives employment to half a million people and also earns foreign exchange for the country being the second largest manufacturer of bicycle & parts in the world. Imports from China & other countries are hitting hard to this industry, many small manufacturing units have close down due to import of finish goods from China. Though there is 30% duty on complete bicycle & 20 % on bicycle parts still huge quantity of goods come in India direct from China or via SAARC Countries at low /under invoicing. It is our humble request to increase the import duty on both bicycle & parts to 50%. Further Original Bill of entry should be called while calculating the customs duty as like done online in African countries (COMESA), so that government does not lose revenue due to under invoicing.”
Regarding raising exemption limit of central excise, he has stated that “exemption limit of central excise at present is 1.5 crore which is on the lower side keeping in mind the inflation. This limit should be raised to 3 crore.”
About introduction of GST, he has stated that “it is our humble request that Goods and Service Tax (GST) should be introduced on priority so that there is uniform tax policy all over the country.”
He has hoped serious thought will be given to their problems & suggestions for the benefit of MSME industry.
Date:
Sunday, July 13, 2014