It suggested measures to revive and rehabilitate MSMEs and complained that measures undertaken by banks are inadequate and only a handful can be revived this way
Abolish professional tax, bring schemes to revive small industries, amend the scheme to make food processing sector to make it more industry friendly and give State GST officials more authority to grant refunds are amongst a host of suggestions, local industries have given to the state government ahead of the upcoming state budget.
In its memorandum to the state government, Gujarat Chamber of Commerce and Industry (GCCI) suggested that Gujarat is among rare states who has persisted with professional tax, which adversely affects competitiveness of local players. "Revenue collected as a part of professional tax is just Rs337 crore and it is estimated that 40 per of it or Rs135 crore is collected from traders. However, the hassles caused to traders is disproportionate to the revenue collected," said the memorandum. The state budget is to be presented on February 19.
GCCI has also suggested measures to revive and rehabilitate Micro Small and Medium Enterprises (MSMEs) and complained that measures undertaken by banks to revive MSMEs are inadequate and only a handful of MSMEs can be revived this way. "The government should intervene to expedite revival of small businesses. It should also allocate Rs1,000 crore in the budget for the measure," said the memorandum.
"MSMEs are backbone of the economy. Often they have orders, but cannot fulfil them for the want of finance. In such cases, the government should ensure that finance is provided to these entrepreneurs even if they have exhausted all their collateral. It is very necessary that MSMEs get timely and adequate finance," said Jaimin Vasa, president of GCCI.
It also said that close to 400 companies in food processing sector had applied for subsidies in a scheme by central government, which was later on subsumed in the state government scheme. However, those who had applied in central government scheme are not being given subsidy by the state government. Such lapses affect the sentiments of the companies, the memorandum said.
Late disbursal of refunds under GST is also a major bottleneck for the industries and officials of SGST should be given autonomy to grant refunds, demanded GCCI.
SMALL SECTOR
- It suggested measures to revive and rehabilitate MSMEs and complained that measures undertaken by banks are inadequate and only a handful can be revived this way.
- Close to 400 companies in food processing sector had applied for subsidies in a scheme by central government, which was later on subsumed in the government scheme
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