MSMEs in Tamil Nadu now look upto new govt to reduce power tariff, ease tax burden

Coimbatore: The Confederation of All Entrepreneurs Associations on Friday said they were expecting the new govt to be formed in Tamil Nadu to address long-pending demands of micro, small and medium enterprises (MSMEs), including reducing power tariff and easing tax burdens. "These measures are crucial for industrial growth, employment generation and higher tax revenues," it said.In a statement, M Jayapal, president of Recycled Textile Federation and state general secretary of Tamil Nadu All Entrepreneur Federation, said the state was home to around 45 lakh MSMEs employing more than two crore workers. He said the new dispensation should allocate an additional Rs3,800-Rs4,100 crore annually to the electricity board to offset the impact of tariff hike on industries. The federation also expressed concerns over the state's rising debt burden. It said Tamil Nadu's debt increased from Rs55,000 crore in 2006-11 to Rs5.65 lakh crore in 2021-26 and the same could cross Rs11 lakh crore in 2026-27, if the current trend continued. The state is paying nearly Rs200 crore a day of interest, it claimed. The federation said fulfilling the welfare promises made ahead of the assembly election could require additional borrowings of more than Rs1.40 lakh crore annually, apart from existing commitments such as subsidies, welfare schemes and interest payments on previous loans. According to the federation, MSMEs contribute nearly Rs74,000 crore through state taxes and Rs22,000 crore through direct taxes every year. Among its key demands, the federation sought a 50% cut in fixed charges for low-tension consumers, lower demand charges for high-tension consumers, and waiver of network and wheeling charges for solar and wind power used by industries.
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