FM disappoints MSME sector on Finance in Union Budget-2017-18: CICU

Ludhiana, February 2, 2017: In press release issued today Sh.Avtar Singh President and Sh.Upkar Singh Ahuja, General Secretary, Chamber of Industrial and Commercial Undertakings (CICU) gave comments on Annual Union Budget 2017-18 and appreciated the steps taken by the Arun Jaitley, Finance Minister, Government of India.

? They welcomed the income tax rebate of 5% for the companies with an annual turnover upto 50 crores. Now, they have to pay 25% instead of existing 30% as a tax.

? The decision for introducing Rs. 2000 cash donation limit per person for funding the political parties is a step to control the black money.

? They have also appreciated the funds allocation for transport sector of Rs. 2.41 lakh crore and Bharat Net Project allocated Rs. 10,000 crores. This will boost the Transport Heavy Vehicle industries.

? Service charges on e-tickets booked through IRCTC have been withdrawn is also a good step taken by the Government.

? The steps taken for the increase in the income upto 3 lakh and reducing existing rate of Taxation of those with income between Rs. 2.5 to 5 lakh from 10% to 5% is good for the general public.

They have also said that even the budget is good for the general public but there is no relaxation for MSMEs. No special package has been provided to boost the MSME sector which has got big dent due to demonetization.

Finance Minister has disappointed the whole MSME sector on the Finance. It was expected that some relaxation will be given in reducing the rate of interest for MSMEs sector but nothing has been done.

The target of Rs. 2500 crore digital transactions for the next fiscal year is not possible, because nothing special incentives for the digital economy has been made in this Budget.