EEPC Seeks Tax Relief For Manufacturing Msmes Ahead Of Budget 2026

(MENAFN- KNN India) New Delhi, Jan 24 (KNN) The Engineering Export Promotion Council of India (EEPC) has called on the government to roll out targeted tax relief for non-corporate manufacturing MSMEs in the upcoming Union Budget, including lower income tax rates and quicker GST refund release.

The council has suggested reducing the income tax rate for all non-corporate manufacturing MSMEs from 33 percent to 25 percent to ease financial stress and improve competitiveness.

It also urged the government to ensure the prompt release of 90 percent of GST refunds to boost liquidity and cash flows in the sector.

Support for Engineering Exports

Highlighting the concerns of engineering exporters, EEPC Chairman Pankaj Chadha said focused tax reforms and supportive policies are vital to sustain growth in the engineering goods sector.

He noted that timely refunds and rationalised taxation would enable MSMEs to expand operations and better meet export demand.

Push for Green Manufacturing

In its Budget recommendations, EEPC has also called for incentives to encourage sustainable manufacturing by MSMEs, proposing 100 percent depreciation on rooftop solar investments, compared to the current 20 percent allowance.

"In a move to help MSMEs reduce costs and meet sustainability goals, rooftop solar is a practical climate solution for small manufacturers,"

Chadha said. He added full depreciation would increase green energy adoption, reduce electricity expenses for MSMEs, and help lower their carbon footprint.

The EEPC said targeted tax relief, quicker GST refunds, and renewable energy incentives would bolster MSME manufacturing and advance India's export and sustainability goals.

(KNN Bureau)

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