Micro Small and Medium Enterprises (MSMEs) have urged the Cabinet MSME Minister, Mr. Nitin Gadkari to abolish the Minimum Alternate Tax (MAT) amid slowdown due to Coronavirus outbreak.
In a letter written to MSME Minister Nitin Gadkari, J R Bangera past president – KASSIA, Laghu Udhyog Bharathi, Karnataka and FKCCI, has said that ‘MSMEs are likely to incur losses due to slow down of the demand both in domestic and international markets due to overall slowdown and especially due to coronavirus pandemic.”
He further said that most of the manufacturing sector have to take care of the employees and other financial commitments adding that ”it is imperative that these MSME companies will not be in a position to show profitable balance sheet hence likely to incur losses.”
”My earnest request to you to recommend for the abolition of MAT for all MSME’s registered under the MSME act as on March 31st 2020. This will help to mitigate certain cash flow during this situation. Once the lock down is lifted and everything’s comes to a normal, it will also help us to plan the expansion,” he avowed.