The Engineering Export Promotion Council of India (EEPC) has demanded lowering of income tax for non-corporate manufacturing MSMEs in the Union Budget and expediting payment of GST refunds. The council said that income tax for all non-corporate manufacturing MSMEs should be reduced to 25% from 33% and 90% of GST refunds should be released immediately.
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It also proposed allowing 100% depreciation on rooftop solar investments by manufacturing MSMEs, instead of the current 20%.
Targeted tax reforms and policy actions would support engineering goods sector, said Pankaj Chadha, chairman of the EEPC.
In a move to help MSMEs reduce costs and meet sustainability goals, rooftop solar is a practical climate solution for small manufacturers. “We have suggested to [the government] to allow 100% depreciation on rooftop solar investments by manufacturing MSMEs, instead of the current 20%. This will incentivise adoption of green energy, lower electricity cost for MSMEs, and reduce carbon footprint,” he said.
