Small sector wants tax structure simplified, welcomes GST
23 Feb 2011
A simplication of the tax structure through introduction of the goods and services tax (GST) at the earliest would be a welcome development for the micro, small and medium enterprises (MSMEs) in the country.
Currently there are multiple taxes and a complex filing processes, which limit MSME growth, an industry spokesman pointed out. The introduction of GST would alleviate these multi-taxation issues, he added.
Listing his Budget hopes, IndiaMART.com founder and CEO Dinesh Agarwal said the government should extend the export incentives to the IT sector to domestic IT industry as well.
"It is important to now shift focus to domestic IT industry which will not only generate more employment but also build an efficient and automated ecosystem in India," said Agarwal.
He also sought an increase in Budget allocation to facilitate the growth of SMEs, which in turn would further boost their contribution to manufacturing output and exports.
The SME sector is a major employment generator in the country, employing over 60 million people. Supporting their growth will result into more employment creation. There is also a need for more collateral-free financing. Though the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) offers the same, we need to increase its depth to include more small-scale enterprises, he said.
