KCCI writes to PM for relief to MSMEs amid Covid-19

The Kanara Chamber of Commerce and Industry (KCCI) has demanded relief to MSMEs following the Covid-19 pandemic and the ensuing lockdown.

In a memorandum to Prime Minister Narendra Modi, KCCI President Isaac Vas said the second wave of the Covid-19 pandemic has enveloped the Tier II and III towns and villages. The pandemic has created unexpected health challenges affecting the economy and its contributors, he said. Micro Small and Medium Enterprises (MSMEs), urban middle and lower middle class engaged in self-employment, small businesses or non-government jobs, and the scattered service sector have taken also taken a considerable beating. He felt that the packages announced by state governments do not have concrete, urgent remedies, and it is unlikely that relief can reach the affected at the earliest.

The 'Aatmanirbhar Bharat' packages of 2020 have not been announced for the second wave. As a result, the lower middle class, urban poor and even the rural poor are slowly bleeding and losing power to face the crisis.

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To help to save the economy, the central and state government should suspend the rise in petrol-diesel prices for the next three to six months, the KCCI said, adding that increase in property tax, vehicle tax, income tax, and GST rates must be halted and reduction in rates for one to two years should be considered.

Vas urged the government to initiate measures to waive the Escom fixed charges for MSMEs and postpone payment of EMI of all loans of MSMEs without any compounding interest. He urged to extend the period of all compliance like submission of Form C for CST assessment, the period for construction of house property to avail Section 54/54F benefits.

Further, he also urged to relax the NPA norms for loan availed. The RBI and the Minister of Finance should come out with innovative solutions for this testing time, he said. A special package should be announced for the travel and hospitality industry, including travel agents, hotels and the tourism sector, he said.

The authorities should also initiate measures to reduce electricity and utility rates for the next 3-6 months and waive interest on arrears. Grant extension of due dates for filing tax returns under GST laws, he said.