COIMBATORE: Industrialists and experts in the city welcomed the move to cut corporate tax for micro, small and medium enterprises (MSMEs) with an annual turnover up to Rs 250 crore to 25%, but said they were disappointed that the same has not been extended to partnership ﬁrms. “While the reduction in tax will beneﬁt the MSMEs in the city, partnership ﬁrms have been left out. Coimbatore has many partnership ﬁrms and their corporate tax stays at 30%,” said PR Victor Advisor, Auditors’ Association of South India.
G Karthikeyan, chairman of Indus Entrepreneurs, said corporate MSMEs would now have an undue advantage over partnership ﬁrms.
Lack of announcements for startups has also raised concerns. “The budget does not provide the much needed thrust to innovation and starups. It’s a disappointment that too when the Centre pitches for Make in India,” Karthikeyan added.
While the thrust on agriculture and healthcare would beneﬁt farmers and the general public, the lack of new incentives for the manufacturing sector has upset the industrialists. “Steps taken to increase agricultural income will improve the market for quality agricultural pump sets,” said K K Rajan, president, Southern India Engineering Manufacturers’ Association. He said the allotment of Rs 2.04 lakh crore for the development of 99 smart cities would beneﬁt Coimbatore. “However, it is disappointing that there is no new incentive for the manufacturing sector in the budget,” Rajan lamented. The budget is overall balanced and prudent in terms of providing incentives for new jobs, extending ﬁxed term employment