Tirupur: Tirupur industry sector accuses the central and state governments of acting in a way that crushes small, micro and medium enterprises.
On behalf of the Tamil Nadu All Entrepreneurs’ Federation, President M.P. Muthuratnam, General Secretary M. Jayapal, Treasurer S. Govindaraj, and Vice President Srikanth jointly spoke to reporters in Tirupur today (Nov. 26) at the Tirupur TEEMA Sangam office: ”90 percent of Tamil Nadu is engaged in small, micro and medium enterprises. Especially in Tirupur, a situation has arisen today where small enterprises cannot operate. Due to various reasons such as the increase in electricity tariffs in the past, increase in raw material prices, GST, currency devaluation, corona infection, yarn prices, 50 percent of the enterprises have closed down, unable to continue their business. Many are in a crisis of leaving this industry.
Small, micro and medium enterprises are unable to recover from the electricity tariff hike. In this situation, by raising all taxes again, it is impossible to do business. The government should take steps to restore industry, but it should not burden the industry with additional burden. Compared to other states, the increase in electricity tariff and tax is very high.
The government itself is giving concessions to large companies. But small, micro and medium enterprises are unable to make demands from the government. The central government has imposed 18 percent GST on rented buildings. Imposing 18 percent GST is unfair when foreign trade and domestic trade are severely affected due to reasons including global war. Small, micro and medium enterprises are being crushed to get funds for free schemes announced by the central and state governments.
Today, our livelihood is affected. The state government should withdraw the property tax hike and the GST tax imposed by the central government on buildings. The state government has increased building tax, vacant land tax, and garbage tax many times over. Political parties are giving concessions for votes. The government is not paying attention to small, micro and medium enterprises, which is why they are doing very badly today. Let the party provide freebies in the funds. By providing freebies, they are collecting more tax from the people. Only after the freebies came, Tamil Nadu has started floundering in debt.
The Tamil Nadu All Entrepreneurs’ Federation fully supports the complete shop-lockdown protest of the traders’ associations to be held in Madurai and Virudhunagar districts on the 29th to protest the imposition of 18 percent GST tax on rent paid for buildings used for commercial purposes. If the government does not take appropriate action in this regard, the next phase of the protest will be launched. It has shocked small entrepreneurs that those doing business under Rs. 1.5 crore per year do not have the opportunity to get back the 18 percent GST tax paid on rent as input tax.
If a 20,000 square foot building costs Rs. 1 lakh as rent, then Rs. 12 lakh will be available per year. But out of this, Rs. 9 lakh will have to be paid as tax. “Tamil Nadu Chief Minister M.K. Stalin should immediately withdraw this, as the Tamil Nadu government is unable to pay the industrial, property and garbage taxes that have been increased by the local government administration in a situation where small and micro enterprises are struggling with electricity bills,” they said.
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