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Former Karnataka Minister urges government to help MSME sector; welcomes cut in corporate tax

Updated: Sep 21, 2019 06:38:50am
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Former Karnataka Minister urges government to help MSME sector; welcomes cut in corporate tax

New Delhi, Sep 21 (KNN) Former Karnataka minister  RV Deshpande has urged Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to help Micro, Small and Medium Sector (MSME) by giving relaxation in the moratorium period of repayment of long term loans.

According to media reports, the congress leader, in a couple of letters, said that increasing the moratorium for credit from five years will help the sector to beat the temporary hardship.

“This measure will not require any additional fund support or subsidy from the exchequer. This will not have any financial burden on the part of Government or financial Institutions. But MSME sector will get a big boost to kick start the growth,” the former minister said.

The MSME sector, Deshpande said, was in distress leading to large scale unemployment.

“In this regard, I welcome the decision by the Government, yesterday, to ask banks not to declare any stressed loan account of MSME as NPA till March 2020,” he said.

While reacting on the Finance Minister decisions of reducing corporate taxes, Deshpande said that the measures will boost economy.

''I welcome the measures taken to boost economy by @nsitharaman. Corporate tax rate down from 30% to 22% and for new manufacturing companies from 25% to 15%,Buy back Tax exempted for buy backs announced pre 5th July Minimum Alternative Tax ( MAT) reduced from 18% to 15%,'' he tweeted.

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