MSME Highlights in Union Budget 2018: LIVE UPDATEs
Key highlights for the MSME sector in the Budget Speech are as follows:
“Mass formalization of MSME sector is happening after demonetization and GST. Rs 3,794 crore is was set aside for MSME last year for mass formalization. The government will soon announce measures to address non-performing assets of MSMEs. The tax burden on MSME will also be reduced. Rs 3 lakh crore for lending under is being allocated in FY 19 for PM’s MUDRA Yojana. ‘Revitalising of Infrastructure and Systems in Education’ will be launched, with a total investment of Rs 1 lakh crore in next 4 years,” says Finance Minister Arun Jaitley.
Taxation for MSMEs
“100% tax deduction for the first five years to companies registered as farmer producer companies with a turnover of Rs 100 crore and above. 12.6% growth in direct taxes in 2017-18; 18.7% growth in indirect taxes in 2017-18. Employment-based tax incentives will be extended to footwear and leather industry. By incentivizing MSMEs, we propose to extend the benefits of corporate tax by bringing down the tax rate to 25% for firms that reported turnover up to Rs 250 crore,” says Finance Minister Arun Jaitley.
Rs 3,794 crore given to MSMEs last year for mass formalization. The government will soon announce measures to address non-performing assets of MSMEs.
Earlier, Mr. Jaitley announced that the government’s focus will shift from Ease of Doing Business to Ease of Living for poorest of the poor. Breaking with tradition, Jaitley is delivering the speech both in Hindi and English. This is the Narendra Modi government’s first post-GST and last pre-poll Budget and is expected to provide Income Tax and Corporate tax relief along with farm sops. Jaitley’s fifth Union Budget is arguably his toughest yet as he seeks to address farm distress, create jobs and boost growth while sticking to fiscal prudence and negotiating a tricky GST twist. This Budget is being keenly watched to see what Arun Jaitley does to boost growth in Asia’s third largest economy.
“Creation of job opportunities has been at the core of policy-making. The government will fund 12% of wages for new employees of Employees’ Provident Fund in all sectors. Take home salary of new women employees to go up in the formal sector. Only 8% PF to be cut in first three years. There is no change in EPF,” says Finance Minister Arun Jaitley.