Punjab MSMEs have a Budget wish list | SupportBiz


Punjab MSMEs have a Budget wish list

Seek simplified procedures for SMEs, 100% IT exemption and a five-year tax holiday for SSIs.

Punjab's micro, small and medium-sized enterprises (MSMEs) have made a request for certain incentives in the upcoming Union Budget, reports the Business Standard

The Punjab Chamber of Small Exporters declared that the state’s MSMEs are seeking double the current excise exemption limit (Rs. 1.5 crore), as well as the rate of interest on loans for the sector to be reduced to 10% or less, to help the units in their timely repayment.

Ashwani Kohli, the Vice President of The Punjab Chamber of Small Exporters, stated that Punjab's MSMEs have also demanded a tax exemption for SSIs for a period of five years, provided they show a growth of 20% annually during this time frame. ‘We are pinning all our hope on the Budget, with our wish list,’ Kohli quipped. He added that there has been a constant decline in the number of SMEs in the State, and the remaining are faced with several challenges. ‘These are not only a cause of concern for the State, but for the Centre as well,’ Kohli said.

He also mentioned the rapidly changing prices of steel, stating that they have been a cause of concern for the MSMEs engaged in exports. ‘The government should rationalise the cost of the raw material. It should be offered to MSME exporters at a uniform price across India, irrespective of their location,’ he said.

Apart from this, the State MSMEs have also demanded a 50% concession in railway freight for exportable finished goods, as well as a simplification of the procedures for the SMEs. They have also asked for a resumption of the 100% income tax (IT) exemption, a clause that was withdrawn in 2004.

Sharad Aggarwal, President of The Northern Chamber of Medium and Small Industries, has requested the government to lay emphasis on research and development (R&D) if the MSME sector has to compete with global units. ‘To boost our R&D activities, the government should offer a 150% weighted deduction to the SMEs in a simplified manner,’ Aggarwal stated. He also mentioned the MSMEs’ demand for tax benefits for xporters. ‘We expect the central government not to further delay the implementation of the goods and services tax (GST) regime,’ he stated.