New Delhi, Dec 13 (KNN) Putting forth the demands and expectations of the chamber from the government with regard to the upcoming budget, IMC Chamber of Commerce and Industry’s in pre-Budget presentation said that the government must consider focussing on the Micro, Small and Medium Enterprises (MSMEs) in the country.
The Chamber further said MSMEs are vital towards creation of jobs in the country. Therefore special emphasis towards hand holding the sector is imperative for economic growth.
Citing study conducted by Mckinsey and Boston consulting group, IMC informed that the country was able to generate only 7 million jobs as opposed to the space of 60 million jobs that were needed.
Referring to the corporate tax, in line with similar demands raised by other stakeholders as well. The chamber urged the finance ministry to consider reduction in the corporate tax.
The Chamber pointed out that in United States of America, the government has reduced the corporate tax to 20 per cent, this would lead to the rise in interest rates there, having a cascading impact in India as well since dollar would strengthen leaving weaker rupee.
In such a scenario the government should take cognizance of the fact that India’s foreign exchange flows will also reduce.
Also the chamber called for the government’s attention towards the sectors that have an edge in international market including the dairy as well as the two-wheelers industry.
The Chamber further raised that the SEZ policies in the country need a revamp since in the recent times, the essence of the policy is lost reducing it to mere land deals.
Also the government must consider doing away with MAT on the export profits that the units in SEZ earn.
Echoing similar GST related concerns, the chamber said that the government should take into consideration the need for impact assessment of the new taxation.
The capital flow continues to haunt the different sectors with no relief along the line so far. (KNN/DA)