PM Modi: Govt working since Highlighting the tax relief provided to MSMEs, PM Modi said “MSMEs earning up to Rs 50 crore in 2014 had to pay 30 per cent tax. Today this rate is 22 percent. In 2014, companies used to pay 30 per cent corporate tax, today this rate is 25 per cent for companies with income up to Rs 400 crore.”
Stressing on the role of MSMEs in the country, Prime Minister Narendra Modi on Tuesday said the government has addressed the challenges of MSMEs along with providing them facilities. Addressing the post-budget conference by industry body CII, PM Modi said, “We also have a huge focus on MSMEs. This (sector) provides employment to crores of people.”
The Prime Minister said the government has been working continuously since 2014 to ensure that MSMEs get the necessary working capital and credit, reduce their compliance burden and taxes, improve their market surplus and prospects, and formalize MSMEs.
“In this budget also a new credit guarantee scheme has been launched for MSMEs,” he added.
Finance Minister Nirmala Sitharaman in her full budget speech announced a Rs 100 crore credit guarantee scheme specifically for units in the manufacturing sector.
The scheme focuses on providing term loans for the procurement of machinery and equipment without collateral or third-party guarantee. However, the borrower would be required to pay an upfront guarantee fee and an annual guarantee fee on the reducing loan balance.
Moreover, the loan limit under the Mudra scheme was enhanced to Rs 20 lakh from Rs 10 lakh for existing borrowers.
Highlighting the tax relief provided to MSMEs, PM Modi said “MSMEs earning up to Rs 50 crore in 2014 had to pay 30 per cent tax. Today this rate is 22 percent. In 2014, companies used to pay 30 per cent corporate tax, today this rate is 25 per cent for companies with income up to Rs 400 crore.”
He also spoke on entrepreneurship and startups in the country. “Today, there is a mood among the youth of the country that they have to do something on their own. Be it the Mudra Yojana, Start Up India campaign, Stand Up India, they are helping the youth a lot. More than 8 crore friends have started a business for the first time by taking help from Mudra Yojana.”
“Today there are about 1 lakh 40 thousand startups in the country. And lakhs of youth are working in these, taking new courage,” PM Modi said.
