MSMEs should receive a tax break and have lower operating costs, according to PHD Chamber's request to Sitharaman during pre-budget meetings.

PHD Chamber of Commerce and Industry suggested increasing consumption by providing greater tax rebate opportunities . The body also suggested that the government prioritize farming for MSMEs .

New Delhi, India, November 24: In a virtual meeting with Finance Minister Nirmala Sitharaman on Thursday, PHD Chamber of Commerce and Industry suggested increasing consumption by providing greater tax rebate opportunities, steps to lower the cost of doing business especially for MSMEs, and eliminating tax on biofuels, among other things.Dalmia suggested that more attention be paid to decriminalization and cost of doing business.According to a statement issued by the business body, financial compensation should be given in the form of fines rather than prison.We recommend decriminalization of offences in the GST (goods and services tax) statute by raising the threshold from Rs 5 crore to Rs 20 crore.Dalmia said that these measures would help businessmen to expand their businesses without fear of prosecution.

In the context of India's G20 presidency, there must be a prioritized and substantial investment to boost demand and Ease of Doing Business, including by ensuring that MSMEs have a competitive advantage, he said.Dalmia also suggested that the government prioritize farming for MSMEs, separate manufacturing-linked incentive (PLI) for MSMEs, and reduction of imports from China of finished products, according to Dalmia.To compensate for the long incubation period required in this industry, a industry body suggested that 18% GST be removed from tourism facilities and infrastructure.To compensate for the long time imposed on this sector, a special commission was created to focus on innovative, targeted ways of funding and adoption of green energy.

According to the PHD Chamber of Commerce and Industry, all lending decisions and investments by banks and non-banking finance companies (NBFCs), as well as any government subsidies and grants, should be correlated with environmental, social, and corporate governance (ESG) ratings.

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