Before the Budget 2027-28, the industry has started putting forward its demands before the government. PHD Chamber of Commerce and Industry (PHDCCI) has recommended giving relief in tax related to investment in stock market and simplifying loan rules for small businessmen. The Chamber has proposed to abolish Long Term Capital Gains (LTCG) tax and reduce Short Term Capital Gains (STCG) tax from 20% to 10%. Apart from this, many suggestions have also been given to reduce the costs related to MSME loans and manufacturing.
Demand for tax relief for stock market investors
PHDCCI has recommended complete abolition of LTCG tax to promote investment in the stock market. At the same time, it has been proposed to reduce STCG tax from the current 20% to 10%. Along with this, there has also been a demand to reduce the rates of Securities Transaction Tax (STT). The Chamber says that this will encourage long-term investment and more people will join the stock market.
Suggestion for change in NPA rules of MSME loan
To provide relief to small businessmen, PHDCCI has demanded changes in the NPA rules of loans. If the loan installment or interest is not paid for 90 days, the account may be declared NPA. The Chamber wants that this time should be increased to 180 days for MSMEs. The reason behind this is that small businessmen often face delays in receiving payments and their working capital cycle is also long.
Proposal to increase MUDRA loan limit
PHDCCI has suggested increasing the limit of loan available under Pradhan Mantri Mudra Yojana (PMMY). Under this, a demand has been made to increase the loan limit to Rs 1 lakh in Shishu category, Rs 10 lakh in Kishore and Rs 20 lakh in Tarun and Tarun Plus. According to the Chamber, as the cost of projects has increased, the funding needs of small businesses have also increased.
Demand to remove custom duty on LNG and petroleum
To reduce the cost of domestic manufacturing, the Chamber has proposed to remove the 2.5% basic custom duty on import of LNG, naphtha and heavy petroleum inputs. This will provide domestic industries with cheaper raw materials and help in reducing their costs. Apart from this, a demand has been made to implement the CGTMSE scheme in a better way, so that eligible businessmen can get loans without guarantee. It has also been suggested to make it mandatory for banks to follow the rules and to create a centralized portal to know the reasons for loan applications and rejections.
MSME plays a big role in the economy
According to PHDCCI, the share of MSME sector in the country’s GDP is about 31%. Its contribution in total exports is 48.58% and in manufacturing is 35.4%. There are more than 7.47 crore MSMEs in the country, which provide employment to about 32.8 crore people.
PHDCCI President Anil Gupta said that the government has taken several steps to strengthen industries and MSMEs. Changes in NPA rules, increase in Mudra loan limit and credit guarantee, equity support can further strengthen this sector.
At the same time, Dr. Ranjit Mehta, General Secretary and CEO of the Chamber, said that easy loans, tax relief and better implementation of government schemes will give impetus to manufacturing and industrial development in the country.
Source: ndtv.in
