LAHORE: The Small and Medium Enterprises Development Authority (Smeda) has given proposals for budget 2015-16 and urged the government to enhance income tax exemption limit up to Rs600,000, increase cash withdrawal limit up to Rs100,000 and reduce corporate tax to 30% and 20% for small companies.
The Small and Medium Enterprises (SMEs) contribute 40% to GDP, over 40% to exports and provide significant employment opportunities. There is a need to provide necessary support to overall SME sector to achieve the policy goals as set out in Pakistan Vision 2025.
The Smeda has proposed an export credit guarantee insurance scheme besides increasing the income tax exemption and decreasing the corporate tax for SMEs in the upcoming federal budget.
The Smeda, as an SME promotion agency, has developed budget recommendations for FY 2015-16 and submitted to Ministry of Industries & Production, Ministry of Finance and Federal Board of Revenue, seeking special attention for SMEs in the national budget.
Smeda CEO Alamgir Chaudhry has said that the proposals had been developed in consultation with SME stakeholders, trade associations and Chambers of Commerce and Industries.
