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COVID Relief Package: Key Announcements by Finance Minister for MSMEs

In a bid to support businesses in general and MSMEs in particular, the Union Finance & Corporate Affairs Minister Nirmala Sitharaman has announced the measures as a part of the government’s economic package to mitigate Covid-19 fallout:

  1. Rs 3 lakh crore emergency working capital facility for businesses, including MSMEs
  2. No global tenders for government tenders of up to Rs 200 crore
  3. Extending EPF support for business and organised workers for another 3 months for salary months of June, July and August 2020 to provide liquidity for workers in MSME and other businesses
  4. EPF contribution reduced for employers and employees for 3 months to 10% from 12% for all establishments for next 3 months for workers not covered by government support under PMGKP and its extension to provide liquidity for workers in MSME and other businesses
  5. Relief to contractors given by extension of up to 6 months for completion of contractual obligations, including in respect of EPC and concession agreements
  6. Tax relief to business as pending income tax refunds to charitable trusts and non-corporate businesses and professions to be issued immediately
  7. Reduction in rates of Tax Deduction at Source and Tax Collected at Source by 25% for the remaining period of FY 20-21 and due dates for various tax-related compliances extended to benefit all businesses
  8. Rs 70,000 crore boost to the housing sector and Middle Income Group (MIG) through the extension of Credit Linked Subsidy Scheme (CLSS). The CLSS for MIG with annual Income of Rs 6–18 lakhs was operationalised from May 2017 and was extended up to March 31 2020. It has benefitted 3.3 lakh middle-class families so far. The government will extend the CLSS scheme up to March 2021; 2.5 lakhs middle income families will benefit during 2020-21. This will lead to an investment of over Rs 70,000 crores in housing and will create jobs and stimulate demand for steel, cement, transport and other construction materials

 

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