Commodity Online
KOCHI: Coir Board has thanked the Union Finance Minister P Chidambaram for exempting Coir Board from the purview of income tax.

Coir Board has been included in Sec 10, Sub section 29 (A) to enable the Board to get total exemption from payment of Income Tax.

Coir Board has been set up by an act of Parliament in 1953, and is engaged in the growth of the Coir Industry through developmental and promotional activities. It is not set up with a profit motive, as it is a facilitator.

A C Jose, Chairman, Coir Board thanked the Finance Ministry for accepting the Board’s proposal and for granting the same exemption given to other commodity boards.This move will help Coir Board to access funds for developmental activities, he said.

In order to give a fillip to the Small Scale sector the Budget has also reduced the Guarantee fee and the annual fee of the Credit Guarantee Fund Trust for Small Industries (CGTSI) operated by SIDBI.

The SIDBI will reduce the guarantee fee from 1.5 per cent to 1 per cent and the annual service fee from 0.75 per cent to 0.5 per cent for loans up to Rs.5 lakh. As on January 31, 2008, the Credit Guarantee Trust with SIDBI had extended guarantees to 89,129 units for an amount of Rs.2,479 crore.

This would also help the artisans in the small scale Coir sector and weavers who will seek term loans under the Coir Board's Rejuvenation, Modernization and Technology Up-gradation Fund Scheme, as the beneficiary's have to meet the cost of Guarantee and annual fees of the Trust Fund.

As against the present payment of Rs 3850/- per beneficiary, he would now need to pay Rs 1650 and for the tiny/household sector, the payment would be Rs 4125 against Rs 9625.

The annual fee payable would be Rs 550 for the Spinner and Rs 1375 for the weaver. This would considerably reduce his cost towards the term loans under Trust Fund.

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