One of the budget wish lists of AIE is the abolition of capital gains tax enabling the micro-entrepreneurs to sell their property to regularise their loan accounts, settle their suppliers, and reinvest in the business.
New Delhi: A ration or fair price shop for raw materials; bringing Small Industries Development Bank of India (SIDBI) under the Ministry of Micro, Small and Medium Enterprises (MSME); abolition of capital gains tax on properties sold by micro-entrepreneurs; are some of the Union Budget 2023-24 wish list of the Association of Indian Entrepreneurs (AIE).
The AIE also wants payment of salaries to the interns by the central government for 180 days. According to a memorandum submitted by the AIE, the biggest concern today for MSMEs is the availability of raw materials in time and at a reasonable price.
“Traders and manufacturers are rigging the market with their whims and fancy pricing. The National Small Industries Corporation (NSIC) must implement a PDS (public distribution system) like a ration card system to micro-enterprises for the supply of essential raw materials at a fair price and in small quantities at least at Industrial estates/parks to start with and make them available on a credit basis,” K.E. Raghunathan, National President, said in the memorandum.
The raw material pricing should be under the Competition Commission of India (CCI) to effectively monitor and control the prices, the AIE said. According to AIE, the Ministry of MSME should be vibrant and proactive and the SIDBI should be brought under it.
One of the budget wish lists of AIE is the abolition of capital gains tax enabling the micro-entrepreneurs to sell their property to regularise their loan accounts, settle their suppliers, and reinvest in the business.
“The only asset they have is the land and building of the factory or any other immovable property including their place of stay or office. Presently even if they dispose at distress value, they must pay up to 20 percent long-term capital gain tax to the government. This is sizable when their property is more than 10 years old,” the memorandum notes.
The AIE also wants the central government to increase the Goods and Services Tax (GST) exemption limit for micro-entrepreneurs, up to Rs 2 crore, and also set up a GST Tribunal in every state. It also suggested to the government create an MSMEINTERN scheme whereby the interns employed by the MSME units are paid a stipend of Rs 6,000 per month by the Central government.
“This will be routed through all the State Skill Development Corporations and will serve as a support to youth to gain hands-on experience and to the MSME owners in getting interns to help them survive these tough times without financial strain. These youth might be absorbed by the companies after their internship depending on their performance and skills,” the AIE said.
It also wants an insurance cover to save the Micro exporters from the fluctuation of currency rates.
