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A parliamentary panel on Tuesday recommended setting up of market intelligence cell for MSMEs, and made a case for cut in tax rates for proprietary as well as partnership firms from 30 per cent to 22 per cent on the lines of reduction in corporate tax.
The committee in its Report on Demand for Grants (2020-21) of Ministry of MSME to the Rajya Sabha expressed concern over under-utilisation of funds by the ministry and bulk of expenditure being used in the later quarters of the year.
It also suggested that MSMEs should be allowed to have one unified GST registration, which is applicable to all states.
The panel also proposed multiple registrations with several government agencies for various purposes should be done away with for MSMEs.
Inter-ministerial coordination should be improved to bring out one registration to carry out all business activities - including exports, tax and day-to-day business activities - to improve ease of doing business for MSMEs, said the panel in the report.
It has also suggested that initiatives should be taken to encourage production of honey pouches for ready consumption especially in organizations like Indian Railways, Air India, hospitals, hotels and other organisations in view of its health benefits.
Production of honey pouches should also be encouraged in order to benefit village industries artisans and generate employment in the urban areas under the Honey Bee Mission in the country.
The committee said that the target of becoming USD 5 trillion economy by 2024 can be achieved by exponential growth of MSME sector as this segment has the capacity of building up at a low cost and utilising the modern innovative technology.
It also noted that the constraints faced by Khadi and Village Industries Commission (KVIC)/Khadi and Village Industries Board (KVIB) were mainly due to procedural delays, inadequate technology up-gradation, under utilisation of funds etc.
Despite providing technical guidance to the units in KVI, the problems of the units remain inadequately addressed as a result of which there is sub-optimal functioning of institutions/units and high drop outs among new entrants and low employment generation.
The committee said that KVIC should come forward with a more holistic and unified policy in co-ordination with all the stakeholders.
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First Published: Tue, March 03 2020. 22:32 IST