: Hit by upsurge in fuel prices, MSMEs demand reduction of levies #finance #StockMarketNEWS Hit by upsurge in fuel prices, MSMEs demand reduction of levies Bangalore, 19 Oct (KNN) The rise in petrol

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Hit by upsurge in fuel prices, MSMEs demand reduction of levies #finance #StockMarketNEWS
Hit by upsurge in fuel prices, MSMEs demand reduction of levies Bangalore, 19 Oct (KNN) The rise in petrol and diesel prices has increased transport expenses of workers as well as production cost of factories, which has hit the Micro, Small & Medium Enterprises (MSMEs) in many ways.

Karnataka Small Scale Industries Association (KASSIA) has urged the chief minister of Karnataka to immediately cut the existing sales tax of 35% and the Centre to reduce excise duty of INR 32.90 charged by it per litre.

“The workers are demanding to increase their salaries to meet their rising commuting cost as most of them use their own vehicle for commute. Even in case of those workers who use public transport for work, there is a real possibility that they too will be increasing the fare sooner than later,” KASSIA stated in a press release.

Moreover, many vendors have signed up one year or more contract with their purchasers, and now the increase in diesel price has effectively reduced their margin which they cannot pass onto their customers.

The Association observed that the return of fuel consumption level to pre-Covid times indicates that the economy is on the rebound and therefore there is no need for the government to delay its decision to reduce duty on it.

“The State as well as the Centre should act collectively to trim down the price rise otherwise the situation will run out of control and let inflationary conditions into the economy,” KASSIA opined.

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