Pune: The plastic and garment industries have less expectations from the Union Government in the interim budget, while the jewellery industry expects removal of GST on job workers’ wages to encourage employment and also to save the handcrafted jewellery business.
Ravi Jashnani, President of Maharashtra Plastic Manufacturers Association, said, “The GST on plastic, which is 18 per cent, should be reduced to 12 per cent. The income tax slab should be raised for small manufacturers.”
The garment industry expects that the taxation slab should decrease further. Amol Yemul, owner of Peshwai Creations, said that the tax should go down. “There was no tax on handloom garments. But now the government has levied 5 per cent tax on handloom, which should be decreased further. There is 12 per cent tax levied on readymade garments, which should come down to 5 per cent. Also, the period of paying taxes should be kept quarterly or yearly.”
While the jewellery industry is hoping that the interim budget will bring an extensive change in policy for gold and gems and jewellery industry. Saurabh Gadgil, CMD, PNG Jewellers; Director and National Vice President, IBJA, said, “We look forward to the removal of GST on job workers. Moreover, we are hoping that the budget will have some provisions to encourage gold investments and loans, establish bullion banks to deal exclusively with gold and silver, start gold savings and recurring deposit accounts and easy availability of gold loan through bullion bank for domestic and export purpose.”
“Similarly, easy availability of working capital finance for jewellers by moving this sector as a priority sector for lending. From this budget, we are anticipating a cut in duty on bullion by 2 per cent every year and to cease import of gold or gold-related items from ASEAN countries permanently. We also expect exemption of income tax from interest received under gold monetisation scheme and sovereign gold bond scheme,” Gadgil added.
Fatechand Ranka, President of Federation of All Trade Association of Pune, said, “From this budget, we are anticipating that the GST on gold should reduce and local business should br promoted. Also, we hope that the government may start presumptive income tax mechanism for this industry based on turnover for the manufacturer, wholesalers, job workers, and retailers to improve transparency.”