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  • Category: Miscellaneous

    Why not encourage small local brands with some tax concessions?

    Everyone knows that Pepsi, does not sell Coke in South India. One does not know about North India but they are positively into a big range of processes food products.

    Possibly, this is one reason that smaller brands are all over the markett. In Tamil Nadu, in every district, there is a registered soft drink brand that keeps selling variants of the Cola and other soft drinks like orange flavours, the lime flavours and so on. The smaller packs in disposable bottles retail at just Rs.10 apiece and these sell like hot cakes, particularly in summer.

    One understands that GST is applicable and some State taxes are also applicable. However, since the volumes are huge, the unit prices are not increased at all. Mostly, it is just the same Rs10 as of now.

    A question that naturally arises is whether more of entrepreneurs can be engaged in the same business through tax and other concessions. After all, it is also the lower middle class that is very much active as consumers. Why should not the manufacturers be given some State support?

    It is not the unorganised sector. It is the local formal sector. Ofcourse, the local unorganized sector comes in the form of smaller packs of Rasna or buttermilk and so on. One can be very sure that similar products will be there in every State. When the great Adani and Ambani can become so rich through State support, why not the small entrepreneurs?
  • #753576
    What the author has been talking about local brands as regards to beverages are concerned and we have enough in every district of Tamil Nadu. And we know the GST share would also goes fifty percent to the state govt and let the Stalin forgo the same for the sake of small brands to survive. But that would not happen. In Tamil Nadu, the cool drinks business is going in big way even surpassing the big brands share across the country and therefore the state govt would not touch this subject and then get lost over the issue. Moreover the small business firms are not maintaining the hygiene as regards to cool drinks and there is no check and accountability on them. Being beverage and TN being going through shortage of drinking water, people do encourage small brands but that does not mean quality is assured and our health safe.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #753610
    In East Godavari District of Andhra Pradesh, there is a very famous company that produces soft drinks and that company is the largest seller of soft drinks in two or three districts of AP state. Thanks to the online delivery of the items. I can get them online to Hyderabad also. There is a small pack which costs about Rs.10/-.
    Like this, there are many local companies in many places which produce food items to cater for the needs of the local areas. Many incentives are being offered by the state as well as the central governments for the startups and other MSME investors.
    These days many people are trying to enter into small businesses and they are trying to get financial support from various financial institutions. Already the government has exempted GST for small companies up to some turnover. If they support further many companies may come and give a tough fight to big companies and MNCs.

    drrao
    always confident

  • #753622
    For the small shops and small entrepreneurs, there are already many facilities and tax exemption made available by the Govt. I do not think that there is anything else can be done as they are already under exempted GST category because of the annual transaction falling below 50 lakhs. So, I do not think that there is anything else possible in such cases. Of course the state government can always get some special schemes or special subsidies to these entrepreneurs either through the less interest on loans or in the framework of the state government procedures and working.
    Only thing that is of importance there is that small operators should improve the quality of their product and make it health and hygiene friendly so that they sell it more and slowly they outsmart the foreign brands or other leading brands in the market. Once the public finds the worth and quality in a particular product with reasonable price the branded products will miserably fail in the market.
    When we are buying the low quality cheap products from China then why we will not be buying average or good quality products priced reasonably from our entrepreneurs?

    Knowledge is power.


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