Ministry bats for tax sops for growing MSMEs; spl package on cards
Updated: Apr 03, 2013 01:08:02pm
New Delhi, Apr 3 (KNN) MSME Ministry has approached the Finance Ministry to provide tax benefits to growth bound MSMEs apart from working out a special package for the sector, MSME Minister KH Muniyappa told reporters yesterday.
“The government is incentivizing growth of the Micro, Small and Medium Enterprises (MSMEs) by continuing to provide the non-tax benefits which they will enjoy for next three years after they have grown up. I would urge the Finance Minister to also extend, on a similar basis, the tax benefits to such growth bound MSMEs,” he said.
Muniyappa said that he has asked officials to work on a special package for the MSMEs. “We look forward to further support from the entire government to contribute to the growth of MSMEs. To that end I have asked officials of my ministry to work on a special package which I will then take to the Cabinet for their consideration and guidance,” he added.
He explained that Finance Minister P Chidambaram had already announced measures to support MSMEs. These include setting up of 15 Technology Development Centres upscaling the Cluster Development Scheme for village industries to 800 units during the 12th Plan.
“The government will also increase funding for SIDBI from Rs 5000 crore to Rs 10,000 crore,” he said.
In addition, 100 new enterprises will be set up in every district of the country every year under the Prime Minister’s Employment Generation Programme (PMEGP). MSME Ministry has allocated over Rs 8,000 crore in the 12th plan under PMGEP to set up 3.39 lakh enterprises which would create 27.12 lakh employment opportunities.
Muniyappa also said that the budgetary allocation to the sector had been increased to Rs 24, 000 crore in this plan from Rs 11,000 crore in the last plan.
"The sector contributes around 9 per cent of GDP; accounts for around 45 per cent of the manufacturing output and around 36 per cent of total value of exports. It employs nearly 8 crore persons," he said. (KNN)
“The government is incentivizing growth of the Micro, Small and Medium Enterprises (MSMEs) by continuing to provide the non-tax benefits which they will enjoy for next three years after they have grown up. I would urge the Finance Minister to also extend, on a similar basis, the tax benefits to such growth bound MSMEs,” he said.
Muniyappa said that he has asked officials to work on a special package for the MSMEs. “We look forward to further support from the entire government to contribute to the growth of MSMEs. To that end I have asked officials of my ministry to work on a special package which I will then take to the Cabinet for their consideration and guidance,” he added.
He explained that Finance Minister P Chidambaram had already announced measures to support MSMEs. These include setting up of 15 Technology Development Centres upscaling the Cluster Development Scheme for village industries to 800 units during the 12th Plan.
“The government will also increase funding for SIDBI from Rs 5000 crore to Rs 10,000 crore,” he said.
In addition, 100 new enterprises will be set up in every district of the country every year under the Prime Minister’s Employment Generation Programme (PMEGP). MSME Ministry has allocated over Rs 8,000 crore in the 12th plan under PMGEP to set up 3.39 lakh enterprises which would create 27.12 lakh employment opportunities.
Muniyappa also said that the budgetary allocation to the sector had been increased to Rs 24, 000 crore in this plan from Rs 11,000 crore in the last plan.
"The sector contributes around 9 per cent of GDP; accounts for around 45 per cent of the manufacturing output and around 36 per cent of total value of exports. It employs nearly 8 crore persons," he said. (KNN)
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