Union Budget for 2016-17 has evoked mixed responses from MSME (Micro, Small and Medium Enterprises) sector in Dakshina Kannada district.

B A Nazeer, President of Canara Plastic Manufacturers’ and Traders’ Association (CPMTA), told that the initiative to pay the Employee Pension Scheme contribution of 8.33 per cent for all new employees enrolling in EPFO for the first three years of their employment will help incentivise job creation in MSME sector.

Many MSMEs, who are already facing many problems, consider twice before recruiting people. This initiative should help create jobs in MSME sector, he said. The announcement of reduction in income tax rates for small income category and increase the turnover limit under Presumptive Taxation Scheme to Rs. 2 crore will bring big relief to a large number of assessees in the MSME category, he said.

Nazeer said that the levy of clean energy cess on coal may lead to the increase in power tariff making it difficult for MSMEs.

Rammohan Pai Maroor, President of Kanara Chamber of Commerce and Industry (KCCI), said that the initiatives related to start-ups and infrastructure are welcome.

These initiatives are a major plus for both the government and the trade and industry sectors, he said.

Source: Business Line