February 14, 2015 1:50:04 am
The manufacturing sector in the industrial corridor of Pune has witnessed a de-growth if advance tax is any indication. Manufacturing is the backbone of this industrial corridor and data from the income tax (I-T) department reveals a 0.07 per cent dip in advance tax in 2014, compared to 2013, till December.
Sectoral analysis by the department took into account taxes paid by top manufacturing companies that constitute 40 per cent of taxes collected and hence form the backbone of financial planning for the department. Manufacturing is one of the biggest income-generators in Pune and roughly employs over 1,00,000 people. Other than automobiles, this includes companies engaged in manufacturing capital goods and creating infrastructure.
Figures from I-T department showed that around 38 companies constitute top tax payers in the manufacturing sector of Pune. Advance taxes paid by them till December 2014 was Rs 1,147 crore as compared to Rs 1,148.52 crore till December 2013. There was a dip of 0.07 per cent in tax collected, incidentally the only sector that had seen a de-growth. Majority of the other sectors witnessed positive growth though most of them saw single-digit growth.
Industry watchers said that over the last few years, the manufacturing sector has been reeling under lack of big ticket investments, and there has been a shortage of substantial orders.
Anant Sardeshmukh, director general of the Mahratta Chamber of Industries Commerce and Agriculture (MCCIA) said that the last big ticket investment in Pune was in 2008-09 when General Electric (GE) set up their plant in Chakan.
“In the succeeding years, growth in the sector was halted due to opaqueness of policies, lack of investment in infrastructure and other causes,” he said. Sardeshmukh said the tax data seen is a corroboration of the slowdown.
“Manufacturing sector will grow only when there is investment. Government should take steps in this direction. In particular, investment environment should be made feasible which should be addressed in the Union budget,” he said.
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