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‘Nothing much for MSME sector in budget’
Some industrialists associated with the Micro Small and Medium Enterprises (MSME) sector in Uttar Pradesh indicated they were not much enthused by the Union Budget.
Some industrialists associated with the Micro Small and Medium Enterprises (MSME) sector in Uttar Pradesh indicated they were not much enthused by the Union Budget.
The MSME sector, considered to be the biggest contributor to the country’s GDP, was expecting major announcements from finance minister Nirmala Sitharaman for the sector.
“There is nothing much for the MSME sector in the budget. Maybe, we can dig out later after reading the budget thoroughly,” said Kiron Chopra, a leading MSME entrepreneur of the state.
The Indian Industries Association (IIA), an industry lobby-body for the MSME sector, had suggested a cut in tax slab for the MSME sector from the existing 30% to bring it down to the level of corporate tax of 20%.
The IIA had also suggested to the Centre a waiver of loan processing fee availed from the Credit Guarantee Fund Trust for Small and Medium Enterprises. But this also had not been fulfilled, representatives of this lobby group said.
“There has been no rebate in tax for the MSME sector and no waiver of loan processing fee availed from the Credit Guarantee Fund Trust for Small and Medium Enterprises,” said Man Mohan Agarwal, general secretary, IIA.
The IIA had also suggested to raise the limit from Rs 2 crore to Rs 5 crore for availing loan from the Credit Guarantee Fund Trust for Small and Medium Enterprises.
“This has also not been fulfilled,” said Surya Havelia, secretary, IIA.
Reacting to the budget, Khalid Masood, MD, Shalimar Corp Ltd, said: “All tax payers have been given the option of considerable exemption from reduction in income tax. An increased affordable housing scheme and a discount of Rs 1.5 lakh has also been given on low-cost houses.”
PN Mishra, chairman, Parth Infrabuild said: “The Centre’s decision to give tax rebate of Rs 1.5 lakh on home loan will be a boost for the real estate sector.”
