CHENNAI: Why are the Micro, Small, and Medium Enterprises (MSMEs) feeling left out of the Union government’s Budget 2021? Tamil Nadu Small and Tiny Industries Association (TANSTIA), the apex body of MSME associations in the State, feels that the Union government has ignored its suggestions which it had submitted for the revival of the sector.
S Anburajan, president, TANSTIA, said the agency sent detailed suggestions to the Union Finance Ministry, including 23 points for the revival of the MSME sector; but they were completely ignored. It is learnt that TANSTIA had sought income tax reduction for Micro and Small Industries to 15 per cent and 20 per cent respectively, as the tax slab for large industries and the MSMEs are at the same level. “It is disappointing to note that none of the suggestions are considered and the MSME sector has been overlooked in the Budget 2021,” Anbuselvan added.
Meanwhile, TV Hariharan, president, Chennai District Small Scale Industries Association, said the MSME sector hoped for announcements on reduction of GST rates, increase in GST turnover limit, waiver of late fee on GST returns, reduction in bank interest rates, and measures on delayed payments.
‘FM drew a pathetic blank’
“The Finance Minister drew a pathetic blank on these constraints as far as the MSME sector is concerned,” he noted. The measures introduced with reference to “Housing for All” is a welcome move as the sector will benefit therein, Hariharan continued, “However, the high cost of iron, steel, plastics, and other raw materials is a matter of deep worry. Though relief in Customs duty is given on the raw materials, it is inadequate.”