Union Finance Minister Nirmala Sitharaman will present the Union Budget 2020 on February 1, at a time when India’s economy is witnessing one of the worst periods of a slowdown in decades.
Several Micro, Small and Medium Enterprises (MSMEs) from various sectors are eying at the budget with a ray of hope that the forthcoming budget might strengthen them to deal with the upcoming challenges which they are facing amid an economic slowdown.
Like other states, MSMEs in Assam are too eagerly waiting for the upcoming budget. Federation of Industry & Commerce of North Eastern Region (FINER) Chairman RS Joshi who earlier suggested that in order to bring the economy on track, the government should reduce the Goods and Services Tax (GST).
Mr. Joshi quoted that at present forget about certain parameters like fiscal deficit and others and the single moto should be that how the economy can be reinstated like what it was earlier.
Citing, as an example of tax reduction in the corporate sector, Joshi said, ”The government reduced the tax in the corporate sector to deal with slow down when it wasn’t asked by the corporate sector, but government reduced it to help them out.”
”Similarly, this is the time we should send all positive signals possible in one goal. Across the board, if there is a deduction in Tax rates. Like 28 per cent GST needs to be reduced to 18 per cent across the board which is the ideal rate. This will encourage consumption,” he said.
Auto sector and cement industry have 28 per cent of GST, so this the time where we should reduce the rate of GST, he said.
Giving more emphasis to his statement, Joshi cited an example of 2008, when the government had reduced the percentage in exercise duty during the recession.
”We had done a similar exercise in 2008 during the recession known as ‘exercise duty reduction’. At that time Finance Minister took the pain to do this. So, if such steps are being taken then it will heal the consumption, growth and investment,” he added.
Lastly, commenting on MSMEs, Joshi said that MSMEs alone can’t do well, there has to be changed everywhere.
”I feel that across the board reduction in GST could be a major step for getting things to be sorted out,” he concluded.