Around 2 lakh businessmen affected in Ludhiana due to amendment: Raja Warring
LUDHIANA: Punjab Pradesh Congress Committee (PPCC) President and Ludhiana MP, Amarinder Singh Raja Warring demanded the immediate rollback of Section 43B(h) of the Finance Act 2023 outside the Parliament building complex today. This amendment, which pertains to the payments made to micro and small vendors registered under the MSMED Act, 2006, has drawn widespread criticism for its adverse impact on the MSME sector, particularly in Ludhiana, Punjab.
Warring, accompanied by fellow Congress MPs Charanjit Singh Channi, Gurjeet Singh Aujla, Sukhwinder Singh Randhawa, and Dr. Amar Singh, expressed his deep 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. These businesses rely heavily on extended credit terms to manage their cash flow, and now, their very survival is at stake, " Warring stated.
He further criticized the central government's policies, accusing them of favouring large corporations at the expense of small businesses. "Instead of promoting small businesses, the BJP-led government is making policies that benefit their corporate buddies. This is nothing short of a planned loot of our country by the corporates with the union government’s help, and we won’t let it happen, " Warring declared.
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, 2006, these expenses will not be allowed as a deduction under Income Tax laws. "This policy is indirectly incentivizing buyers to source their raw materials and goods from medium and large industries, pushing our small businesses further into crisis. The 'suit-boot' sarkaar needs to come to the aid of our small businessmen, " Warring emphasized.
Warring also highlighted the promises made by Union Finance Minister Nirmala Sitharaman during her visit to Punjab, where she assured a rollback of the amendment. "Nirmala Sitharaman promised that she would roll back this amendment while she was in Punjab during the election campaign. But now, she has told me to meet the MSME Minister instead. I will meet him to put forward the demands of the MSME businesses, but this only underscores how disconnected the BJP leaders are from the people actually affected by their policies. They sit in their offices and create AMENDMENTS which affect the entire nation negatively while they are unaware of the same." he said.
Concluding, Warring reiterated his commitment to standing by the MSME sector and ensuring that their voices are heard. "We demand that Section 43B(h) be recalled immediately. The MSMEs are the backbone of our economy, and we will not rest until this unjust amendment is rolled back. Ludhiana has the most number of MSME businesses in Punjab with a majority of Ludhiana’s economy affected due to this amendment, " he asserted, vowing to continue his fight against what he termed as the central government's "anti-small business" policies.