Although political pundits will have us believe that this budget could see a positive windfall keeping in mind that the general elections are not far away, it is beyond anyone’s guess as to what is in store.
The small, medium and micro industries are fidgeting in anxiety after having seen some tough times in the past few years.
Amid the anxiety is the hope that some of their long pending and some new wishes may come true in the FMs’ speech and could bring a cheer on their faces and balance sheets as well.
It’s called small, but it’s bigger than the biggies.
The SME segment contributes more to nation building in pure GDP terms to the tune of close to 45 per cent ofIndia’s Industrial production.
It is a segment that the FM cannot afford to ignore.
Expectations
Progressive Taxation: It’s time that the finance ministry starts re-looking at the way SMEs are taxed. Unlike their bigger counterparts, these industries are heavily dependent on small cash flows.
A differential tax system based onturnover can help channelize tax and improve cash flows.
Treating them in the same league as corporate is unjust especially in toughtimes where every penny matters.
SME Exchanges
Industry bodies like the Confederation of Indian Industry have voiced their wish to see more impetus towards SME Exchanges to help the segment generate capital.
As of now the general opinion is that the process of listing and the associated policies are highly complex and unclear and hence form a hurdle for more SMEs to enter the market.
More involvement will improve overallliquidity and cash flow and can push revival of the industry as awhole.
The fox is coming -- let GST rollout not become a myth. . . For more than 3-4 years there has been constant talk about a uniform taxsystem being rolled out in the form of the Goods and Services Tax.
Yet, it still seems to be like a mirage on the horizon.
The SME segment is unable to move to the next league majorly due to the complex differences in taxation by various state governments and hence try to stay in the comfort of their parent state than go to new territories.
It is in the best interest of the nation to rollout the GST immediately and create a level playing field. Many in the SME segment are worried that it may lead to more
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