Industry body PHD Chamber of Commerce has actually looked for hassle-free credit centers for MSMEsSteps ought to be taken in the upcoming union budget plan to ensure problem-free credit accessibility to market, particularly for micro, small and medium business (MSMEs) and lower the expenses of working, stated Pradeep Multani, president, PHD chamber of commerce and market (PHDCCI).
Mr Multani suggested that the reforms need to be undertaken to strengthen the MSME sector given its considerable contribution to the economic and social development of the country.The market body's president recommended extension in the timeline of the emergency situation credit line guarantee scheme (ECLGS) for another year till March 31, 2023.
On the tax front, Mr Multani suggested a decrease in tax on MSME firms working as Proprietorship/ Collaborations as it will benefit the entire MSME sector.
For such organizations, it is suggested that the maximum tax slab be brought down to 25 per cent, he said.Mr Multani said that for the new units, the effective rate of tax is around 17 percent.
So we recommend allowing the entities to take benefit of Area 115 BAB the time limit enabled to begin producing by a brand-new system might be extended by March 31, 2025.
To provide terrific momentum to exports, PHD chamber recommended that export earnings need to be made tax-free for MSMEs for three years and earnings of large enterprises from incremental exports (Y-o-Y) be made tax-free.
This will help in partly compensating the additional cost of logistics and other bottlenecks which Indian exporters face.He further stated that relevant fundamental customized task (BCD) needs to be reduced by 50 percent on basic materials for manufacturers, increase the public investments in agriculture facilities from the present level of 6 per cent of the overall gross capital formation to at least 10 per cent in the next 3 years with an enhancement of 1.5 percentage points every year.
This will also minimize the agri-wastages from more than 25 percent to less than 10 per cent in the coming times.Talking about the direct taxes Mr Multani recommended increasing the tax base by motivating individuals to pay the taxes with profitable tax-paying advantages such as providing a limit of pension (after their retirement above the age of 60 years) for those who pay taxes continuously and truthfully.
This will increase the tax base in the nation.