Pune: Addressing the problems of medium, small and micro enterprises (MSMEs), Finance Minister Arun Jaitley has reduced the tax slab by 25 per cent for small enterprises with an annual turnover of Rs 250 crore.
Recognising the role of MSMEs in employment generation and financial activities, Jaitley allocated Rs 3,794 crore for credit support to MSMEs. “MSMEs are a major engine of growth and employment in the country and this will be used for improving financing of MSMEs’ capital requirement,” said Rujuta Jagtap, secretary with Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA).
Pune has the maximum number of MSMEs, as compared to any other Indian city and thus, this is going to immensely help them. “Jaitley also announced bringing on board state-owned banks on the MSME bill discounting platform and link it with the GST network, which is a good move,” she added.
“Reduction in tax for MSMEs will leave companies with higher investible surplus, which, in turn, will create more jobs,” she added.
However, Vice-President of MCCIA, Deepak Karandikar, had a different take on it. According to him, structural changes in MSMEs were needed to benefit it in the long run. “Actually, in neighbouring countries, MSMEs depend on the number of employers, and employment generation, while our country largely sees this sector as an investment sector. We were hoping that the long awaited bill, which has been tabled, for increasing of the limits will be mentioned, but it did not get any mention. There were no incentives towards labour or labour laws,” he said.
Representatives of Pimpri Chinchwad Medium and Small Scale Industries said that there was nothing for the small-scale industries in the budget and hence, they were totally disappointed. This budget is going to adversely affect the growth of this sector, they added.
Premchand Mittal, President of Pimpri Chinchwad MSME Industries Association said, “The budget is totally disappointing for micro, small, as well as medium industries. Only corporate companies those having turn over of up to Rs 250 crore annually have got relief of 5 per cent in corporate tax.”
President of Pimpri Chinchwad Small Scale Industries Association, Sandip Belsare, said “We are demanding for interest cut on the credit that is being availed to us. But this was not addressed in the budget. This budget has disappointed the small and micro scale industries, as most of the people working in the industry belong to middle class, where there is no change in the income tax slab.”
Chairman of Middle Scale Industries Committee, Yogesh Babar, said, “The cost of steel has been increased dramatically in the last one year. We are demanding the formation of a regulatory authority in this sector. Also, there is a demand to give construction sector a status of industry, so that people can avail credits from financial institutions.”