In the Union Budget for 2017-18, Finance Minister Arun Jaitley has proposed a cut in corporate tax rate for micro small and medium enterprises with revenue less than Rs 50 crore to 25% from 30% earlier. A move that will benefit 96% of MSMEs.
Bhasin said the cut in tax would provide some comfort and competitiveness to the small and medium exporters which were facing “short-term pain” due to demonetisation. The association head said that more clarity was needed with respect to the minimum alternate tax and hoped that interest rates came down.
“For realizing 8-10% GDP growth ambition, exports must grow by over 15%. The going has become even more tough in view of the trade disruptions coming from the US , Brexit and the protectionist tendencies being resorted to,” EEPC said in a statement.
Source: The Economic Times