Top priority for MSMEs, accelerating spending on rural digital infrastructure to make work from anywhere possible and simplification of tax system as well as moderation of rates are aspects the Federation of Telangana Chambers of Commerce and Industry (FTCCI) look forward to in the Union Budget 2021-22 scheduled to be presented on Monday.
It also appealed to the Centre to refrain from imposing COVID related cess. “If levied, it will be very negative on manufacturing and service sectors,” the Federation said.
A release on budget expectations of the umbrella body of trade and industry bodies said MSMEs should get top priority and incentivised as they had been worst-affected due to the pandemic. “Given the state of economy, there perhaps was no area that does not need a shot in the arm, but we still hope the MSMEs and start-ups in the manufacturing space find special attention from the Finance Minister,” the release said.
Appealing for tax exemption to companies making products in India, FTCCI called for more investments in infrastructure, warehousing and transport-related investments towards easing logistics for small and medium businesses. It wanted the production linked incentive (PLI) scheme to be extended to other key sectors, beyond the 10 presently covered.
Stating that Work from Home post COVID had emerged a necessity, the more than a century old federation said the budget should accelerate spending on rural digital infrastructure, thereby making work from anywhere a ‘true possibility’. “This will not only ensure development of rural economy but also help decongest cities.” In the backdrop of more businesses foraying online, it expected the government to provide incentives towards digital infrastructure for small businesses in tier II/III towns to promote e-commerce and ease of doing business.
On tax measures, FTCCI said, “The various slabs for income tax as well as indirect taxes need to be moderated. Compliance mechanism also needs to be simplified.” For Telangana, the federation wanted allocation of funds for pending railway projects and infrastructure development at Kakatiya Mega Textile Park in Warangal. It also wanted sanction of a turmeric board in Nizamabad.
