Industry body demands Rs 25,000 cr from Sitharaman

Industry body demands Rs 25,000 cr from Sitharaman

Finance Minister Nirmala Sitharaman. (PTI Photo)

A delegation of industry body PHDCCI on Wednesday met Finance Minister Nirmala Sitharaman and demanded setting up of Rs 25,000 crore fund for providing credit to the key MSME sector on easier terms.

"The meeting with the Finance Minister was very productive and we look forward to a revival of economic growth trajectory very soon," said D K Aggarwal, President, PHD Chamber of Commerce and Industry, in a statement.

The delegation also urged the Finance Minister for the immediate release of funds by the government to BSNL and MTNL as they owe more than Rs 20,000 crore to MSMEs and other vendors.

"We have suggested setting up of a dedicated fund of Rs 25,000 crore with no collateral being asked for the MSMEs on the lines of fund for stalled housing projects as the MSMEs are the major demand and employment creating a sector of the Indian economy," Aggarwal said.

During the meeting, it was also suggested that the profits earned in foreign exchange and dividends received from foreign subsidiaries may be made non-taxable.

This would be highly beneficial for the Indian companies investing in foreign subsidiaries, thereby encouraging repatriation of profits from foreign operations, the chamber said.

As per the industry body, many of the MSMEs do not fit in the corporate category and hence they are not able to avail the lower tax benefits and suggested that the maximum tax slab should be 5 per cent.