Covid-19 impact: Assocham seeks wage support, interest subsidy to help industry

Industry chamber Assocham on Wednesday recommended the government to extend relief measures such as regulatory easing, wage support, and interest subsidy for the MSMEs which are reeling under the severe impact of COVID 19.

As the states are in the process of easing lockdowns, the trade and industry would need all-around support to pick up their business thread again, it said.

It has suggested that the surplus funds of ESIC (Employees State Insurance Corporation) should be used for providing wage support measures/stimulus packages for the employees.

"This is time to support and spend without giving too much focus on the fiscal parameters. I am sure, the RBI and the government are constantly working on innovative solutions to keep infusing cash into the system despite understandable revenue pressures," it said.

It added that the government and the RBI should 'consider an interest subvention scheme with validity till March 31, 2022, especially, for the micro and small business segment.

For providing relief to the worst-hit hospitality sector, the chamber suggested allowing GST Input Credit for restaurants.

"For giving a much-needed boost to the realty sector, it has recommended reduction in stamp duty as also property tax by half at least for three years," it said.

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Credit: Economic Times | Jun 02, 2021