The interim budget for 2024, presented by Union Finance Minister Nirmala Sitharaman, is drawing severe criticism from Fasteners Manufacturers Association of India (FMAI). Terming it as highly disappointing, Narinder Bhamra, the President of FMAI, expressed discontent with the lack of measures to benefit Micro and Small Enterprises (MSEs).
Bhamra pointed out, "While it was anticipated that there wouldn't be significant provisions for MSEs in an interim budget, there could have been decisions to support them. These could have included an increase in the Income Tax Exemption Limit, the establishment of a Steel Regulator, restoration of the CLCSS Scheme, a reduction in import duties on machinery to boost manufacturing, and provisions for Social Security for taxpayers."
Highlighting the disparity, Bhamra added, "Despite the Finance Minister acknowledging the substantial increase in direct tax collections and GST collections, MSEs received no relief. On the contrary, significant benefits were extended to large corporate houses, with their income tax reduced to 22%. In contrast, MSEs continue to face a 30% income tax slab plus surcharge, impacting them adversely."
Expressing concern, Bhamra emphasized, "It is evident that this government prioritizes corporates and individuals below the poverty line for electoral advantages. Unfortunately, there seems to be no inclination to support MSEs or the common man. In summary, the budget offers nothing substantial for MSEs or the common man, leaving us thoroughly disappointed."