Small and medium enterprises surrounded by trouble expectations from the general budget

Small and medium enterprises surrounded by trouble expectations from the general budget

New Delhi: About 3.60 million units are registered in India's small and medium industries ie MSME sector. If unlisted units are added then the number of these units is said to be about 40 million. They have employed more than 12 million people. This is a sector which has grown at a certain pace over the last few years. But in the last one year these industries have faced many difficulties.

At the time of the budget these traders have some demands from the finance minister. The first demand is that the rate of corporate tax will be reduced. The trader says that in the previous budget, the finance minister had said that gradually reducing the corporate tax, but steps have not been taken in this direction. Says Kapil Chopra, MD of SKN Bantex, in Delhi's Narayan area, "Corporate tax is still 30 percent today and it is surcharged and cess above it, it goes up to 35%, it should be 25%, according to the International Standard. Even if there is industrial growth, there are very few, selected people who pay taxes, according to which if 25% will give, then the encouragement of small and medium businesses will increase. "

Knowledgeable experts say that the government had said of reducing corporate tax in the previous budget but perhaps it wants to bring tax recovery to GST at a satisfactory level before starting it in this direction. In the MSME sector, there is still trouble for businessmen, even with GST. Like Kuldeep Singh Bagga, businessman of cosmetic products working in Shimla, who still has to buy alcohol with his VAT for his business. Bagga says, "If GST is to be operated, then apply GST fully. Remove the VAT from the middle .. I give you a precedent. We buy alcohol. In the cosmic industry .. Alcohol is covered in VAT. We have to buy VAT, which we do not get its input credit because because our cell is under GST then there is a cost addition. "

Manufacturing GDP of MSME sector contributes 6.11 percent and 24.63 percent of service GDP comes from this sector. The contribution of this sector to total manufacturing is one-third, which contributes 45 percent to the country's total exports. Still, the problems of people like Surinder Bansal, who are involved in the business of printing, are not less because the machines they use are the monopoly of the manufacturer. Says Surinder Bansal: "If we want to import the machine from outside, then it should be imported and ready as it is very low in the country, when the machine is not built, then it will not be imported. The aluminum plate is only bound, then its monopoly Plates can be made by licensing people as well.

Even though the government is talking about Is of Business all over the world, businessmen like Kapil Chopra say that there has been a lot of problems for small businessmen in this direction. Chopra says, "Suppose today someone has to start a new business, then he has to face the difficulties, from license to all paper work. First building, then map then machinery and then other clearance. To understand all this, five-six years of his life leave. "

Another important thing is that 20 percent of MSMEs are in rural areas ... It is clear that the role of this sector will be in the slogan of Prime Minister's inclusive growth. In this regard, these business people need to listen.