Industrial bodies in Tamil Nadu seek tax relief measures from TVK govt

Coimbatore: Industrial bodies in Tamil Nadu have urged the newly formed TVK govt to reduce electricity tariff and introduce a series of tax relief measures to revive the struggling MSME sector, citing mounting operational costs and prolonged financial stress.Addressing reporters at Pappanaickenpalayam, J James, coordinator, Federation of Coimbatore Industrial Associations, said the Tamil Nadu Electricity Board had increased the monthly fixed charge for micro, small and medium enterprises (MSMEs) from Rs35 per kilowatt to Rs165 in 2022, resulting in a 450% increase. "This has pushed many entrepreneurs into crisis," he said, urging the state govt to reduce the tariff burden. He said the Commercial Taxes Department had reopened assessments between 2007 and 2022 and issued VAT and SGST notices with penalties to thousands of industrial units, causing mental stress and financial uncertainty among entrepreneurs. "Many small-scale industrialists are now considering shutting down their businesses." The federation, which represents 25 industrial bodies involved in manufacturing, job works and spare parts production, congratulated chief minister C Joseph Vijay, his cabinet and MLAs on assuming office. The federation demanded that GST on job-work industries, wet grinders, motor pump sets and compressors be reduced from 18% to 5%, arguing that the present tax structure was crippling the small manufacturers. James urged the state govt to press the Centre for GST reforms to protect the MSME ecosystem. Pointing out that industries purchasing new machinery were eligible for a 25% govt subsidy, he said the cumbersome procedures and long waiting periods were discouraging entrepreneurs. "Industrialists wait nearly a year just to apply and another two years to receive subsidies." The federation also sought closure of Tasmac outlets near industrial estates and demanded rollback of fuel price hike, stating that demonetization, GST implementation, Covid-19 disruptions, rising raw material costs and soaring commercial cylinder prices had already weakened the sector.