EEPC India submits pre-budget memorandum to MSME Ministry
EEPC India, the apex engineering exports promotion body, has proposed introducing a 25% income tax slab for MSME manufacturing units that are partnerships, LLPs, or sole proprietorships.
In its pre-Budget memorandum to the Ministry of Micro, Small and Medium Enterprises, EEPC India also suggested increasing the benefits limit available under the Interest Equalization Scheme (IES) to Rs 10 crores from Rs 50 lakh now and offering 100% depreciation for investment in solar power generation by MSME units.
Pankaj Chadha, Chairman, EEPC India said in a statement, «Private limited companies currently pay 25% income tax, while entities like partnerships, LLPs, and sole proprietorships pay approximately 35% after including surcharges. We therefore urge the government to introduce a 25% income tax slab for MSME manufacturing units that are partnerships, LLPs, or sole proprietorships. The condition would be that the extra 10% saved must be reinvested in the business.»
“Certain policy actions like those recommended by the EEPC India are essential to raise the share of MSMEs in India's GDP and exports which would create more jobs. The country needs a dynamic MSME sector to absorb the youth joining the workforce and grow the country’s manufacturing base,” Chadha said.
EEPC India draws nearly 60% of its members from the MSME segment.
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