FM Sitharaman Promises Re-Evaluation Of IT Rule For Msmes Post-Elections
Date
5/29/2024 2:19:40 PM
(MENAFN- KNN India) Chandigarh, May 29 (KNN) Union Finance Minister Nirmala Sitharaman held a meeting with industrialists from the micro, small and medium enterprises (MSME) sector in Ludhiana on Tuesday.
Minister Sitharaman assured that the new government would revisit the income tax rule amended recently which requires MSMEs to pay tax on outstanding receivables not paid within 45 days after elections and make necessary amendments based on industry consultations.
She stated that further dialogue with MSME representatives, either in Ludhiana or Delhi, would follow the government's formation.
The MSME lobby voiced apprehensions that this new regulation has adversely impacted businesses, with some larger companies halting work with MSMEs to avoid potential tax implications.
Beyond tax issues, the industrialists raised several long-standing demands including improved infrastructure and labour availability.
Notably, they sought a dedicated airport for the city and enhanced budgetary support for MSME units.
The representatives from Ludhiana's prominent cycle manufacturing hub called for reduced GST rates on cycles to increase affordability. They also advocated for the construction of dedicated cycling tracks to promote the industry.
While attentive to the concerns raised, the Finance Minister did not make any concrete commitments on the specific demands apart from revisiting the income tax regulations.
As the electoral campaign period is ongoing, both government and industry will likely await formation of the new administration before substantial policy decisions.
(KNN Bureau)
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