The Assocham Industrial Room on Wednesday commended the government for expanding its assistance such as regulatory cuts, wage support, and interest subsidies for MSMEs struggling due to the significant impact of COVID 19.
As countries are in the process of reducing locks, trade and industry will need support from all sides to revive the business chain, it said.
It was suggested that the remaining funds of the ESIC (Employees State Insurance Corporation) should be used to provide remuneration measures / incentive packages.
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“This is a time for funding and spending without focusing too much on the financial sector. I am convinced that the RBI and the government are always working on new solutions to continue investing in the system despite significant financial pressures,” he said.
He added that the government and the RBI should ‘look into the legal interest rate plan by March 31, 2022, in particular, in the small and medium enterprise sector.
By providing assistance to the most affected hospitality sector, the room proposes to approve the GST Input Credit of restaurants.
“In order to create much needed impetus in the real estate sector, it has proposed a reduction in stamp duty as well as property tax by half by three years,” it said.
