New Delhi,  Sep 21 (KNN) As Union Finance Minister Nirmala Sitharaman has come up with  slew of fiscal measures to attract fresh investments, Coordinator - Policy and Research, Electronic Industries Association of India (ELCINA) Ashish Saurikhia said that the reduction of approx 5% in the corporate tax will be of great help for the MSME sector. 

Appreciating that government has come up with various tax considerations, he told KNN India "Generally MSME sector suffers with a problem of working capital, the reduction in tax slab along with reduced MAT will provide a major relief to the sector."

This will have a positive impact throughout the value chain and will also help in generating the demand, he added. 

He stated that the problem of cheaper imports from China will also be addressed partially, giving a boost to domestic MSME sales.

Enhanced surcharge will not apply to capital gains arising on equity sale or equity-oriented funds liable to STT stabilise flow of funds into capital markets. This will bring back the investors confidence in the market, ELCINA Coordinator pointed. 

He stated "Effective tax for new company setting up from October 2019 shall be 17.1%, will lead in new investments. This will bring a ambience of trust among MSME investors and their probable investments.Thereby benefitting the domestic industry along with MSME sector."

Saurikhia said "ELCINA would request Government to come up with more generous capital subsidies for the setting up new MSME units along with the expansion of existing units."

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