Finance Minister Nirmala Sitharaman. (File Photo)
\n\nThe industry body has proposed a series of reforms to boost India's capital markets and strengthen access to finance for micro, small and medium enterprises (MSMEs) ahead of the Union Budget 2027-28. In its pre-Budget recommendations submitted to Finance Minister Nirmala Sitharaman, PHD Chamber of Commerce and Industry (PHDCCI) has called for the abolition of long-term capital gains (LTCG) tax on equity investments, a reduction in short-term capital gains (STCG) tax from 20% to 10%, and an extension of the NPA classification period for MSME loans from 90 to 180 days.
\n\nThe chamber has also recommended higher loan limits under the Pradhan Mantri MUDRA Yojana (PMMY), direct government equity support for MSMEs and stronger implementation of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme to improve credit availability and support business expansion.
\n\nThe priority recommendations of the industry body are Rationalisation of Capital Market Taxation, Revision of MSME NPA Classification Norms, Enhancement of PM MUDRA Loan Limits, Direct Equity Support to MSMEs, and Strengthening CGTMSE Implementation.
\n\nRationalisation of Capital Market Taxation: Abolish LTCG tax on equity investments, reduce STCG tax from 20% to 10%, and lower STT rates to encourage…
Original source: https://www.timesnownews.com/business-economy
