Economy

Bharatiya Mazdoor Sangh welcomes first part of FM’s fiscal package

Our Bureau New Delhi | Updated on May 13, 2020

The RSS-affilliated trade union Bharatiya Mazdoor Sangh welcomed the first part of the fiscal package announced by Finance Minister Nirmala Sitharaman here on Wednesday.

The organisation said the package will create confidence and energise the MSME sector. "Banning global tenders up to ₹200 crore worth Government procurement contracts and reserving it for domestic industries and MSMEs will revolutionise India’s manufacturing sector. Thus MNCs will be prevented from siphoning government money to abroad at the disadvantage of MSMEs" BMS general secretary Virjesh Upadhyay said in a statement.

He said providing collateral-free loans and 12 months moratorium for repayment are big reliefs to MSMEs. “Strengthening e-markets for our local retailers in corona affected society is most welcome, and it should gradually replace the e-commerce especially by giant companies. The 25 per cent reduction of TDS and TCS is a relief to employees and other middle-income groups," he said.

Upadhyay said measures to infuse liquidity will increase demand and such steps are most needed for speedy revival.

Quick payment of receivables, providing state guarantees, encouraging transferring of power tariff benefits to customers, return of bank guarantee, the extension of the period of IT return, the extension of the period of various contracts, registration and completion including in real estate will benefit different sectors. The Government’s concern for raising the takeaway salary employees to increase liquidity is good. Government support to payment of EPF should be confined to micro and small scale sector. But the reduction of EPF rate from 12 per cent to 10 per cent for three months could have been avoided,” he added.

Published on May 13, 2020

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