EEPC India Proposes Tax Relief, Financial Incentives For MSMEs In Pre-Budget Recommendations

ENA MSME 2024-12-11 14:59:06 New Delhi, Dec 11 (KNN) The Engineering Export Promotion Council of India (EEPC India) has submitted a comprehensive pre-Budget memorandum to the Ministry of Micro, Small and Medium Enterprises, recommending significant tax and financial incentives to bolster the manufacturing sector. The proposals aim to provide strategic support to micro, small, and medium enterprises (MSMEs) and enhance their contribution to India's economic growth. At the core of EEPC India's recommendations is a proposal to introduce a uniform 25 per cent income tax slab for MSME manufacturing units structured as partnerships, limited liability partnerships (LLPs), or sole proprietorships. Currently, private limited companies benefit from a 25 per cent tax rate, while other business entities face approximately 35 per cent taxation after surcharges. The organisation suggests that the additional 10 per cent tax savings should be mandatorily reinvested into the business. Pankaj Chadha, Chairman, EEPC India, emphasised the critical importance of these proposed policy interventions. He highlighted that such measures are essential for increasing MSMEs' share in India's GDP and export landscape, ultimately creating more employment opportunities. The proposal reflects a strategic approach to supporting the country's manufacturing ecosystem and addressing youth employment challenges. Beyond the taxation proposal, EEPC India has also recommended expanding the Interest Equalisation Scheme (IES) benefits from Rs 50 lakh to Rs 10 crores. Additionally, the organisation advocates for 100 per cent depreciation on solar power generation investments by MSME units, signalling support for sustainable manufacturing practices. With nearly 60 per cent of its membership comprising MSME segment entities, EEPC India's recommendations carry significant weight in representing the interests of small and medium manufacturing enterprises. The proposed measures aim to create a more conducive environment for MSMEs to grow, innovate, and contribute meaningfully to India's economic development. (KNN Bureau) 40217 https://knnindia.co.in/news/newsdetails/msme/eepc-india-proposes-tax-relief-financial-incentives-for-msmes-in-pre-budget-recommendations 2024-12-11 14:59:06 knnindia.co.in EEPC India Proposes Tax Relief, Financial Incentives For MSMEs In Pre-Budget Recommendations