TEA welcome incentive measures

Tiruppur Exporters Association (TEA) has welcomed the announcement of 15 different measures by Union finance minister Nirmala Sitharaman. TEA president Raja M Shanmugam specifically thanked the minister for revising the definition of micro, small and medium enterprises (MSMEs) linking with additional criteria of annual sales turnover. Of the 15 measures announced today at a press conference, six measures are for the benefit of MSMEs, 2 are related to Employee Provident Fund, and 3 are direct tax related. TEA president thanked Prime Minister Narendra Modi, Union finance minister and Union minister of state for finance for laying out comprehensive vision to spur growth and make Self-reliant India (Aatma Nirbhar Bharat).Shanmugam appreciated collateral free automatic loan for standard MSMEs, Subordinate Debt for stressed MSMEs, and Equity infusion for MSMEs through Fund of Funds. The continuance of Pradhan Mantri Garib Kalyan Package (PMGKP), payment of 12% of employer and 12% employee contributions into EPF accounts of eligible establishments for another 3 months to salary months of June, July and August 2020 is also a welcome step, Shanmugam said in a press release. He lauded reduction of employer as well as employee EPF contribution for business & workers for 3 months from 12% to 10%. He also appreciated other direct tax measures and extension of date for income tax return filings.