Tamil Nadu MSMEs To Stage Shutdown On November 29 Against 18 pc GST On Rent

Chennai, Nov 27 (KNN) The Tamil Nadu All Entrepreneurs' Federation (TAEF) has announced its support for a comprehensive shutdown scheduled for November 29 in Madurai and Virudhunagar districts.

The organised protest aims to demand the complete withdrawal of an 18 percent Goods and Services Tax (GST) on rent, highlighting mounting pressures facing micro, small, and medium enterprises (MSMEs) in the state, reported The Hindu.

M.P. Muthurathinam, Chairman, TAEF, expressed grave concerns about the potential impact of the new tax policy.

He cited historical data indicating the closure of up to 50 percent of MSME units since 2010-11, attributing these closures to unfavourable policies implemented by both central and state governments.

The proposed 18 percent rent GST, according to Muthurathinam, threatens to further constrain an already struggling sector.

The federation has strongly criticised the current governmental approach, which they argue disproportionately burdens small enterprises.

Muthurathinam highlighted several compounding challenges, including the absence of Input Tax Credit for businesses with annual turnovers under Rs 1.5 crore, escalating power tariffs, continuous increases in property and professional taxes, and additional municipal charges.

Warning of potential escalation, TAEF has pledged to initiate a state-wide protest if the grievances of MSME units remain unaddressed.

The organisation specifically critiqued what they perceive as a policy framework that offers extensive concessions to large-scale industries while simultaneously increasing the tax burden on smaller enterprises.

The upcoming November 29 bandh represents a significant demonstration of solidarity among entrepreneurs, signalling their collective resistance to what they view as increasingly challenging economic conditions for small and medium businesses in Tamil Nadu.

(KNN Bureau)