MICROCAPITAL BRIEF: Government Overlap, Taxes Concern Indian Micro-, Small and Medium-sized Enterprises (MSMEs)

Micro-, small and medium-sized enterprises (MSMEs) in India cite “multiple taxes and the need for compliance with multiple government departments” as key challenges. The delay in implementing the goods and services tax (GST) is one example of concern, as “it may get rolled out in a more complicated form.” GST is a value added tax (VAT) that will replace indirect taxes levied on goods and services at the national and state levels. Along with faster implementation of the GST and other regulations, industry representatives have urged the Ministry of Finance to consolidate departments and simplify regulations and taxes for MSMEs to operate more successfully [1].

By Brendan Millan, Research Associate

About the Ministry of Finance (India): The ministry is a public institution within the government of India that handles taxation, financial legislation, financial institutions, capital markets, public finance and budgeting.

Sources and Resources:

[1] Business Standard: “Delayed GST a Major Cause for Worry”, http://www.business-standard.com/india/news/delayed-gstmajor-causeworry/467447/

MicroCapital.org Article, February 8, 2012, “Indian Finance Ministry Clears Draft Microfinance Bill Considers Engaging Post Office Banks to Promote Financial Inclusion”, https://www.microcapital.org/microcapital-brief-indian-finance-ministry-clears-draft-microfinance-bill-considers-engaging-post-office-banks-to-promote-financial-inclusion/

MicroCapital.org Article, October 25, 2011, “Indian Finance Ministry Proposes Microfinance Bill Allowing Deposit-Taking, Reserve Bank of India Opposed,”https://www.microcapital.org/microcapital-brief-indian-finance-ministry-p…

MicroCapital.org Article, June 11, 2011, “New Draft Bill From Ministry of Finance Would Expand Role of Reserve Bank of India (RBI) to Regulate Entire Indian Microfinance Sector, Cutting Roles of NABARD, State Governments”, https://www.microcapital.org/microcapital-brief-new-draft-bill-from-minis…

MicroCapital.org Article, March 15, 2011, “Federal Microfinance Bill May Replace Existing State Microfinance Legislation in India,” https://www.microcapital.org/microcapital-brief-federal-microfinance-bill…

MicroCapital Universe Profile: Ministry of Finance (India), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ministry+of+Finance+%28India%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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