Office-bearers of the Federation of Industrial Organisations of Coimbatore (FOSIA) met Tamil Nadu Finance Minister K.A. Sengottaiyan, at Gobichettipalayam, and explained the need to withdraw the hike in fixed charges for the Micro, Small and Medium-scale Enterprises (MSMEs).

The Federation explained the need to withdraw the hike in fixed charges for Low Tension electricity consumers up to 112 KW load. “These charges are creating severe financial crises that adversely affect the livelihoods of micro and small enterprises,” it said. “The Minister has asked for a detailed note on the impact of the fixed charges on MSMEs, the financial impact for the government if it is withdrawn, and so on. He has assured us to take it up with the Chief Minister,” said J. James, coordinator of the Federation.

Another issue that the industry representatives raised was on the severe distress caused by the State government-controlled SGST by the Commercial Taxes Department. It is imposing heavy penalties and demanding the production of finalised accounts from 2007 to 2022. Since entrepreneurs typically retain business accounts for a maximum of five years, the notices issued by the Department has come as a shock to the industries. “The Tamil Nadu government should withdraw all notices issued for past accounts and should not issue fresh notices for old records,” the Federation said.

It should take appropriate measures to verify only the current accounts, it added.