New Delhi, Apr 5 (KNN) With crucial general elections looming, the Indian National Congress (INC), India's main opposition party, has unveiled a series of tax proposals aimed at providing relief to micro, small, and medium enterprises (MSMEs) owned by individuals and partnership firms. These measures form part of the party's election manifesto.

Recognising the challenges of delayed payments and debt faced by MSMEs, the Congress party has promised to ‘lessen the burden of tax on MSMEs owned by individuals and partnership firms.’

Furthermore, the manifesto outlines plans to ‘enact a direct taxes code that will usher in an era of transparency, equity, clarity, and impartial tax administration of direct taxes.’

Notably, the Congress party has pledged to eliminate the contentious "angel tax" and all other exploitative tax schemes that inhibit investment in new micro and small companies, as well as innovative start-ups.

The significance of MSMEs in India's economic landscape cannot be overstated. With 64 million MSMEs operating across the country, these enterprises have played a pivotal role in supporting domestic demand growth by providing a steady supply of goods and services to various major industries.

Despite facing numerous challenges, MSMEs continue to be one of the biggest sources of employment, contributing approximately 29 per cent to the nation's gross domestic product (GDP).

(KNN Bureau)