Availability of credit needs to be improved for MSME sector: FICCI suggests FM
Availability of credit needs to be improved for the Micro, Small and Medium Enterprises (MSMEs) sector, was one of the key recommendations made by Federation of Indian Chambers of Commerce and Industry (FICCI) during the pre-budget consultation meet with Finance Minister Nirmala Sitharaman.
Addressing to the media on the sidelines of pre-budget consultation meet, he said “The combined effect of corporate tax and the dividend distribution tax on corporate India is about 50%. Instead of reducing it flatly, it could be linked to employment creation.”
For every job which company creates its income tax should be lowered, he suggested.
Besides this, he stated “Interest rates still remains very high even after RBI has cut it by 0.75% but it has not been transmitted to the corporate sectors and bank have not lowered the interest. Money availability in market is very tight stiff. We have requested the Finance Minister to reduce the minimum alternate tax as well as the dividend distribution tax.”
For employment generation industry and government should work together and companies who create more jobs annually, their corporate tax should be brought down by five to six percent, he added.
On the ground of minimum tax rates he recommended, there should be no tax for people who are earning up to 5 lakhs annually. In addition to this, 30% tax should be applied who are earning 20 or more than 20 lakhs a year. (KNN/VS)