Budget 2018 | Budget a mixed bag for MSMEs: Gujarat bizmen

The annual Budget for 2018-19 is a mixed bag for small businesses, local businessmen said here on Thursday. The players praised the proposal to raise the annual turnover limit to Rs 250 crore to avail the 25% corporate tax rate, but expressed the need to revise the definition of Micro, Small, Medium Enterprises, as it has not been reviewed for over a decade now.

Speaking to reporters in the city, Shailesh Patwari, President of Gujarat Chamber of Commerce and Industry (GCCI), said the move to raise the annual turnover limit for businesses from the existing Rs 50 crore will benefit the MSMEs the most. “This will reduce the tax burden from 30% to 25%. The lower tax payout will mean that companies have more funds for expansion. They will have more money in hand,” said Patwari. “Moreover, the proposal to boost infrastructure will create demand for small businesses. And with the focus on creating jobs, the demand for goods will rise.”

However, the players feel that the Budget could have had much more benefits for MSMEs. Jaimin Vasa, Senior Vice-President of GCCI, said the definition of MSMEs had not been revised since 2006 and it was high time that it was reviewed. …read more