Lucknow, Feb 2 (KNN) The Indian Industries Association (IIA) said the MSMEs had expected more reduction in the corporate tax for the sector.

Indian Industries Association (IIA) held discussions over Budget announcements.

President IIA Sunil Vaish said that though lot of measures has been taken for the poor but there is very little for MSME Sector to gain out of this Budget.

“Finance Minister in last year’s Budget Speech had committed that the Corporate Tax will be reduced in a phased manner and it was reduce to 25% for the small business having  turnover upto Rs. 50 Crores. We were expecting further reduction in the Corporate Tax for MSME Sector in this budget, however the benefit in this Budget is extended to larger business having turnover upto Rs. 250 crores,” he said.

President IIA further said that though it has been announced that Bank loans to MSMEs will be sanctioned online yet the MSME Sector is doubtful of the attitudes of the Bankers towards MSMEs keeping in view the past experiences.

Moreover, the online systems are not reliable at present as is being experienced in the case of GST. Even today the reports are pouring in from various chapters of IIA that the online E-Way bill system introduced today is not operational properly. Announcements for setting up Mega Food Park & incentives for the Apparel & Leather sector will provide some boost to the MSME Sector said Sunil Vaish.

General Secretary, IIA, K.K. Agrawal said that though there is nothing for MSME Sector in the Budget yet overall it is a balanced Budget if we look at all the sectors combined.

He said the announcement of fixing the minimum support prize for the former at 1.5 times compared to the cost of production will certainly improved the conditions for the farmers which will generate demand and will indirectly help the MSME Sector. It would have been better if Finance Minister could have announced similar relief to the MSME Sector in Government Purchases.

Sanjay Kaul, Chairman Banking & Taxation Committee of IIA, who was present in the discussions, said that he is apprehensive about the success of online loan sanctioning by the Banks. With his Budget and keeping in view the current overall business environment available for the MSME Sector, the number of NPAs in MSME Sector will go up said Kaul.

Manmohan Agarwal, Vice President, IIA, who was also present in the discussion in Lucknow said that the emphasis on Road & Health infrastructure and improvement in the quality of the Education system will indirectly help MSME Sector.

G.C. Chaturvedi, Former President IIA applauded the measures announced for the welfare of Senior Citizens as well as reimbursement of the wages upto extent of 12% of the wages for New Employees employed in MSMEs.

Praveen Chandra, Former Chairman IIA Lucknow Chapter welcomed the increase in the custom duties for certain electronics items. This will help the domestic electronic industry Mr. Chandra said. He also said that bill discounting portal will help in solving the problem of delayed payments of MSMEs. 

Awadesh Agarwal, Chairman Energy Committee of IIA said that announcement of opening atleast  one Medical Colleges in every two parliamentary constituency is a welcome step, however he also felt that there is nothing  much for MSME in the Budget.