Chennai: While the Union Budget, tabled by Finance Minister Nirmala Sitharaman in the Parliament, had many big ticket announcements, the Micro, Small and Medium Enterprises (MSME) segment that provides employment to crores, feels neglected.
T V Hariharan, president, Chennai District Small Scale Industries Association, said the MSME sector hoped for announcements on reduction of GST rates, increase in GST turnover limit, waiver of late fee on GST returns, reduction in bank interest rates, and measures on delayed payments.
‘The Finance Minister drew a pathetic blank on these constraints as far as the MSME sector is concerned,’ he added.
Tamilnadu Small and Tiny Industries Association (TANSTIA) president S Anburajan said the industry body sent detailed suggestions to the Union Finance Ministry, including 23 points for the revival of the MSME sector; but they were completely ignored.
‘We had sought Income Tax reduction for Micro and Small Industries to 15 per cent and 20 per cent respectively, as the tax slab for large industries and the MSMEs are at the same level. It is disappointing to note that none of the suggestions are considered and the MSME sector has been overlooked in the Budget 2021.’
Consortium of Indian Associations convenor K E Raghunathan said, ‘While we appreciate long term commitments to throttle demands and simplify ease of governance and ease of compliance, MSMEs feel they are not adequately taken care of in the Union Budget.’
In a statement, he said, the earlier stimulus packages, announced during Covid times have reached only about 55,00,000 MSMEs in the country out of nearly 7,00,00,000 units.
‘Unfortunately this budget has not allowed ease of closing for those who are impacted beyond recovery, additonal loans as working capital for those who can rebound but unable to due to cash crunch and term loans for those who want to redefine or modernise or create new diversifications,’ he said.
Urging the government to allow IT to be paid on salary received basis than on salary shown basis, he also requested to waive all penalities and late filings till 31 March.
‘Extend all loan restructure by additional one year as moratorium and redefine NPA norms as 180 days,’ Raghunathan said, adding: These are the needs of MSME and in turn immediate creation of employment opportunities.
