Dear Members,
As you are aware, Union Budget 2023-24 has been presented by Hon’ble Minister of Finance Smt. Nirmala Sitharaman today at 11.00am.
In this regard, we would like to submit Highlights/ impact on Chemical sector as follows:
KEY HIGHLIGHTS
1. Prime focus is to widening the scope of economic growth.
2. Boosting key areas like infrastructure and manufacturing and job creation
3. Strong Stable Macro Economic Environment.
4. There are seven priorities that will be the focus of the Union Budget 2023 .
a. Inclusive development,
b. Reaching the last mile,
c. Infrastructure and investment,
d. Unleashing the potential,
e. Green growth,
f. Youth power and
g. Financial sector.
5. Big boost to capital investment : Capital investment outlay is being increased by 33 per cent to Rs 10 lakh crore, which would be 3.3 per cent of GDP, provision for 50-year interest-free loans to state governments has been extended by another year.
6. Higher exports, Higher Domestic Manufacturing, more value addition in the economy, Green Energy and mobility.
7. Delegating powers under the SEZ Act to IFSCA to avoid dual regulation, Setting up a single window IT system for registration and approval from IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDAI.
8. Vivad se Vishwas I – Relief for MSMEs In cases of failure by MSMEs to execute contracts during the Covid period, 95 per cent of the forfeited amount relating to bid or performance security, will be returned to them by government and government undertakings. This will provide relief to MSMEs.
9. An Entity DigiLocker will be set up for use by MSMEs, large business and charitable trusts. This will be towards storing and sharing documents online securely, whenever needed, with various authorities, regulators, banks and other business entities.
10. Credit Guarantee for MSMEs, the revamped scheme will take effect from 1st April 2023 through infusion of ` 9,000 crore in the corpus. This will enable additional collateral-free guaranteed credit of 2 lakh crore. Further, the cost of the credit will be reduced by about 1 per cent.
11. Micro enterprises with turnover up to 2 crore and certain professionals with turnover of up to 50 lakh can avail the benefit of presumptive taxation. It is proposed to provide enhanced limits of 3 crore and 75 lakh respectively, to the tax payers whose cash receipts are no more than 5 per cent. Moreover, to support MSMEs in timely receipt of payments, it is proposed to allow deduction for expenditure incurred on payments made to them only when payment is actually made.
BASIC CUSTOMS DUTY PROPOSALS (CHEMICAL SECTOR)
