Tax Reforms for SMEs on Cards

While the experts have always been in favor of Tax reforms for ensuring growth of SME sector in India. Government is also getting on to an aggressive mode in this direction. In order to boost local manufacturing and create jobs, government is planning to revamp the tax system for the small-scale sector, ship-building and special economic zones (SEZs).

According to few media reports, the revenue department has asked the commerce department to come up with options related to SEZs, an issue that is being discussed for over a year but has seen no progress.

Further the report said that the finance ministry has made it clear that all tax related proposals -such as those related to restoration of minimum alternate tax and dividend distribution tax exemption -will only be taken up at the time of the Budget.

Further, discussions on a new policy for the small-scale sector, including a reworked tax regime, have also started with the cabinet secretariat stepping in on Friday to work out steps that will boost the sector.