Amid the urgent need to address recessionary tendencies being faced by the economy, liberal labour laws and reduced minimum wages will encourage higher employment, submitted the Federation of Karnataka Chamber of Commerce and Industries in its pre-Budget memorandum to Union Finance minister Nirmala Sitharaman on Tuesday.
In the revival of the economy after the COVID period, the industry body has urged the Centre to temporarily halt the "Inspector Raj and notification Raj", stating it is a deterrent to the revival of the industries and would enhance the ease of doing business.
FKCCI president Perikal M. Sundar felt that the state financial corporations (SFCs), which have financed a majority of the MSMEs, should be brought under the purview of the Atmanirbhar package.
"This move will definitely be helpful in reviving the MSMEs financed by the SFCs. Also, a policy to waive off all transaction charges on all UPI Payments, NEFT and similar online transactions is needed to promote online transactions. Banks should allow MSMEs to operate multiple current accounts for the ease of to of doing business, " added Sundar.
The apex body also urged the government to have strict surveillance of medium and large companies to ensure that they disclose a complete data of their outstandings to MSMEs.
"A simple format for balance sheet, profit and loss account and cash flow statement need to be developed for MSMEs," said Sundar adding that FKCCI welcomed the recent changes like faceless assessment, faceless appeals and twin system of computation of taxes.
Emphasising on the need for public-private partnership (PPP model) for the revival and growth of the economy, FKCCI stated that much depended on the successful implementation of the Atmanirbhar package.