From Our Special Correspondent
Daijiworld Media Network

Bengaluru, Jun 17: The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has urged the state government to relax the present lockdown to allow all the Micro, Small and Medium Enterprises (MSMEs) to operate from 6.00 am to 2.00 pm by following the Standard Operating Procedures (SOPs) issued by the government as part of the plans to revive the state’s economy and also to safeguard the interests and livelihood of the trade and business community.

The adverse effect of the Covid-19 pandemic will require at least two years for the business and MSMEs to recover and it is necessary to help them to recover, said FKCCI president, Perikal M Sundar in Bengaluru on Thursday.

Addressing a press conference, he said FKCCI has demanded that the state and central governments must reduce the excise duty and tax to about 15% on petrol and diesel to reduce the cost of transportation, raw material and the burden on the common man as the centre was levying 30% excise duty and 35% as tax on a basic price of petrol and diesel.

At present, the cost of raw materials have doubled, steel prices have been increased from Rs 40,000 to Rs 80,000 per MT, petrol, diesel prices have increased to Rs 100 and Rs 92 per litre respectively.

With these cost increases, he said the trade and industry will not be able to sustain and maintain their industry/businesses by incurring a loss of revenue due to the lockdown and to continue to make payment for wages, loan repayment, maintenance of establishment etc. unless the government comes forward with a package of special schemes and assistance.

FKCCI demanded that the government should come forward to handhold with necessary schemes/grants to assist the trade, industry and business community at this crucial period and procure all their requirements from MSMEs located in Karnataka by giving price preference.

FKCCI also urged the state government to be well prepared and take advance precautions to combat the 3rd wave of the Covid-19 pandemic.

With predictions of a huge shortage of food in the next two to three years, the FKCCI president said there is a need for boosting agriculture production and the state government to initiate new schemes for the promotion of the agriculture sector.

FKCCI requests the Government of India and the state government to give more priority to Health Sector to improve the immunity of people. The government also needs to improve Health Infrastructure in the country. This will also help to boost the economy of the country for the future days.

He said the FKCCI strongly objected to the average increase of 30 paise per unit for all consumers announced by KERC and requested the state government to give directions to KERC to withdraw the power tariff hike for the next two to three years due to the pandemic situation.

It also strongly demanded that the power tax be reduced from 9% to 3% so that power cost per unit will come down to around 42 paise to mitigate the negative effect of power tariff hike allowed by KERC. This will help the consumers particularly industries and will attract investments, he said.

The loss incurred by trade and business community during this lockdown period is around Rs 75,000 crore and the loss of revenue by the tax to the state is around Rs 10,000 crore per month, he said.