Smt. Nirmala Sitharaman, Hon’ble Union Finance Minister called a meeting to discuss and to take opinion and suggestions on Pre Union Budget 2022-23
- Dr CA I S Prasad, President, FKCCI on behalf of entire Industry, Trade & Commerce from Karnataka he thanked Hon’ble Union Finance Minister Smt. Nirmala Sitharaman by announcing Atmanirbhar Bharat Scheme which brought the confidence on MSME.
- He said under Atmanirbhar Scheme 4.5 Lakh Crores credit guarantee benefit has been announced by the MSME. Even after this Banks are classifying the MSME’s under NPA which is affecting the MSME and also the CIBIL rating.
- President informed that MSME contributes almost 60% of the Employment and 40% of the Exports and they are now struggling due to the price rise to meet the customers demands and are suffering due to this fluctuation of price. Government should come out with solutions to regulate this price rise. He emphasized the Hon’ble Finance Minister to support MSME’s in this critical stage. He also suggested to bring back interest subvention scheme to support the MSMEs in this critical condition.
- President, brought the attention of Hon’ble Finance Minister to address the burning issues of Price rise for the survival of MSME’s and to avert the proposed protest called by the MSME across India on Monday 20th December 2021.
- Informed Hon’ble Finance Minister that the Apparel and Fabric industries are struggling due to the recent GST hike from 5% to 12% with effect from 01/01/2022 and requested to roll back the GST to 5%.
- Regarding Relief of GST – President suggested the Government to reduce the penal interest rate 18% and 24% for delay in payment of GST / wrong input tax credit.
- Brought to the notice to address the inverted duty structure anomaly consequent to Supreme Court decision and requested Finance Minister to direct GST Council.
- Ease of Doing Business (EoDB): To maintain either withholding Tax u/s 206H or TDS u/s 194Q for payment to suppliers.
- Suggested to bring concept of real Income and removal of concept of notional Income especially, to support Real Estate Industry/ Land Lords affected due to COVID.
- FKCCI has submitted detailed memorandum suggesting amendment to various Tax Laws.