IIA Finds, Budget 2019 a good Budget for Middle Class & Farmers, But Nothing Much for MSME Directly

Union Interim Budget 2019-20 viewing & discussion session was held at IIA Bhawan, from 10.30 AM to 1.30PM. This session was attended by IIA Officer Bearers, Industrialists, Professionals and Media representatives.

Indian Industries Association (IIA) being an apex body of Micro, Small and Medium Enterprises (MSME’s) though was looking for some announcements for the benefits of MSMEs yet as expected and being interim budget we could not find much in the Budget speech of Hon’ble Finance Minister.

Overall the budget has provided sops for middle-class taxpayers, middle-class homeowners and farmers, said Mr. Sunil Vaish President Indian Industries Association (IIA). On sanctioning loan in 59 Minutes upto Rs. 1 Crore to MSMEs, President IIA said that this announcement is yet to touch the ground as the availability of Finance to the Industries is still very difficult and Banks are continuing with their conservative attitude. Increase in the Income Tax exemption limit upto Rs. 5 Lacs is a big step taken by the Govt. which will benefit MSMEs indirectly through the enhanced purchasing power of salaried people and small businessman.

Mr. Sanjay Kaul, Chairman Taxation and Banking Committee of IIA said that in this budget Hon’ble Finance Minister should have considered some of the recommendations of IIA submitted to the Finance Ministry from time to time like Enhancement of CGTMSE limit for collateral free loan Rs. 10 lacs to Rs 50 lacs and Freezing maximum interests rates for Micro and Small Industries loans to maximum 9%. Mr. Kaul further said that the RBI Guidelines issued for Rehabilitation of Sick MSMEs are not effective at the ground level mainly because the committee under the scheme is not working properly.  IIA have been suggesting the Govt. to revive the functioning of State Level Inter Institutional Committee and provide legal status to it. Only then we can expect rehabilitation of  MSMEs.

The announcement of the Government for enhancing the limit for compounding under GST has been left to the discretion of the States, this should be withdrawn and made mandatory for all the State Governments by GST law of the Central Govt. said Mr. Kaul.  Alike quarterly GST returns by MSEs the tax payment /deposit should also be applicable quarterly for MSEs, suggested Mr. Kaul.

Mr. Manmohan Agarwal, General Secretary IIA said that keeping in view the interim budget announcement, it is a good budget for the common man as well as for the stability of the economy of the Country. This is evident from the statement of Hon’ble Finance Minister that the fiscal deficit target of 3.4% will be maintained in 2019-20 also.

Mr. V.K. Agarwal, Former President IIA, however, is of the view that the Budget should have encouraged the competition as the competitions only make the Economy more healthy.

Mr. G.C. Chaturvedi, Former President IIA expressed his satisfaction on the Budget announcements as this has given a much-awaited relief to the taxpayers.

Mr. Ashok Seth, Tax Advisor of IIA and a renowned practitioner in the City said that increase in the Income Tax limit may be beneficial for the individuals but will reduce the tax base which as an economist I will not recommend.