Small traders hail loan rebate, tax relief

  • | Saturday | 2nd February, 2019

Small and moderate traders experienced acute woes, but with income tax relaxation the market is likely to witness increased flow of money," said SCCI general secretary Vijay Anand Moonka. "The incremental rebate of 2% on Rs 1 crore loan for GST-registered SMEs will be helpful for micro enterprises. "Following the implementation of demonetisation in 2016 and Goods and Services Tax (GST) regime in 2017, market was under strain. The decision to increase sourcing from MSMEs from government undertakings to 25% from 15% was announced at least two months ago. ASIA general secretary Ashish Khetan said: "Ancillary owners of Adityapur were not expectating much as it was an interim Budget.

RANCHI/JAMSHEDPUR: Micro, small and medium enterprises (MSMEs) gave a mixed reaction to the Union government's interim annual Budget for 2019-2020.Jharkhand Small Industries Association (JSIA), the umbrella organization of approximately 3 lakh MSMEs in the state, said the Budget is good but for the salaried class and farmers, but there was not much to cheer for MSMEs. "The incremental rebate of 2% on Rs 1 crore loan for GST-registered SMEs will be helpful for micro enterprises. The decision to increase sourcing from MSMEs from government undertakings to 25% from 15% was announced at least two months ago. However, it is a welcome move," JSIA president S K Agarwal said.Though ancillary units in Adityapur in East Singbhum district did not have high hopes from the Budget, the Adityapur Small Industries Association (ASIA) welcomed the announcement which assured MSMEs loans worth Rs 1 crore in less than one hour. ASIA general secretary Ashish Khetan said: "Ancillary owners of Adityapur were not expectating much as it was an interim Budget. Whatever announcements were made are welcome as they will boost the morale of entrepreneurs."Though ASIA and JSIA lauded the decision of raising the sourcing from MSMEs from government undertakings to 25%, entrepreneurs said the decision needs to be implemented without riders. "The Jharkhand government, as per a recent policy, sources 20% from MSMEs in government undertakings. But many riders are put on it. For instance, MSMEs are rejected based on experience, annual turnovers, previous work orders and other issues. This limits chances of MSMEs which can participate in bidding and enjoy the benefits of the scheme," a Ranchi-based entrepreneur said.The Federation of Jharkhand Chamber of Commerce and Industries (FJCCI) praise the Budget. FJCCI president Deepak Kumar Maroo said announcements for farmers, workers in the unorganised sector will have a positive impact on the economy. "The procurement from MSMEs from Government e-Marketplaces (GeM) is a good move, but it needs some changes. Lowering of interest rates against Kisan Credit Card-aided loans for fish farmers is a welcome change," Maroo said.Singhbhum Chamber of Commerce and Industry (SCCI), the leading organisation of the trade and commerce in Jamshedpur, said income tax rebate for annual income of up to Rs 5 lakh will increase the purchasing capacity of the consumers and will eventually boost trade and commerce."Following the implementation of demonetisation in 2016 and Goods and Services Tax (GST) regime in 2017, market was under strain. Small and moderate traders experienced acute woes, but with income tax relaxation the market is likely to witness increased flow of money," said SCCI general secretary Vijay Anand Moonka.

If You Like This Story, Support NYOOOZ

NYOOOZ SUPPORTER

NYOOOZ FRIEND

Your support to NYOOOZ will help us to continue create and publish news for and from smaller cities, which also need equal voice as much as citizens living in bigger cities have through mainstream media organizations.


Stay updated with all the Latest Jamshedpur headlines here. For more exclusive & live news updates from all around India, stay connected with NYOOOZ.

Related Articles