Ludhiana: Cong MPs seek immediate rollback of tax amendments affecting small traders
Congress parliamentarians from across the state on Friday sought the immediate rollback of Section 43B(h) of the Finance Act 2023, claiming that it adversely affected the small traders of the region, especially Ludhiana, which is a hub of small industries.
Congress parliamentarians from across the state on Friday sought the immediate rollback of Section 43B(h) of the Finance Act 2023, claiming that it adversely affected the small traders of the region, especially Ludhiana, which is a hub of small industries.
Punjab Congress chief and Ludhiana MP Amarinder Singh Raja Warring, Jalandhar MP and former CM Charanjit Singh Channi, Amritsar MP Gurjeet Singh Aujla, Gurdaspur MP Sukhwinder Singh Randhawa and Fatehgarh Sahib MP Dr Amar Singh held placards outside the Parliament building complex.
The amendment pertains to the payments made to micro and small vendors registered under the Micro, Small and Medium Enterprises Development (MSMED) Act and has drawn widespread criticism.
Raja Warring expressed concern over the financial strain this amendment has placed on small businesses.
“The MSME sector, especially in Ludhiana, is facing an unprecedented crisis due to this amendment. Businesses rely on extended credit terms to manage their cash flow and now, their survival is at stake,” Warring said.
He criticised the Centre’s policies, accusing them of favouring large corporations at the expense of small businesses. “Instead of promoting small businesses, the BJP (Bharatiya Janata Party)-led government is making policies that benefit their corporate buddies,” the Punjab Congress chief said.
The amendment to Section 43B(h) stipulates that if payments to small and micro vendors are not made within the period specified under Section 15 of the MSMED Act, these expenses will not be allowed as a deduction under income tax (IT) laws. “This policy is indirectly incentivising buyers to source their raw materials and goods from medium and large industries, pushing small businesses into crisis. The ‘suit-boot’ government needs to come to the aid of our small businesses,” Warring added.
He highlighted the promises made by Union finance minister Nirmala Sitharaman during her visit to Punjab, when she had assured a rollback of the amendment. “Sitharaman promised that she would roll back this amendment when she was in Punjab during the election campaign. But now, she has told me to meet the MSME minister instead,” he said.