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Engineering Export Promotion Council (EEPC) of India has urged the government as part of its pre-budget recommendation that the benefit of lower corporate tax should be extended to Limited Liability Partnerships (LLPs) and proprietary firms as it will make funds available with a large number of Micro Small and Medium Enterprises (MSMEs) thus speeding up private investment cycle which is instrumental to boost growth and jobs.

A body of direct tax professionals also sought for reduction of tax burden on individuals and requested the government to raise the income tax exemption limit at Rs 2.5 lakh to Rs 4 lakh per annum in the upcoming budget for 2022-23 fiscal.

EEPC India Chairman Mahesh Desai claimed around 84 per cent of small businesses are being denied the benefit of lower corporate tax which was aimed at providing industrial units with more investible surplus. He said ‘If the tax cut is to kick start an investment cycle by leaving more money at the hands of business entities, then proprietary firms and LLPs should also get the benefit as they constitute the majority of the pie and this is required for the upliftment of MSMEs’.