₹18,000 cr tax refund relief to tide over the crisis
The Finance Ministry announced on Wednesday that it will immediately release ₹18,000 crore in tax refunds to around 1.4 million individual taxpayers and 100,000 businesses to provide respite against the covid-19 pandemic. “It has been decided to issue all the pending income-tax refunds up to ₹5 lakh immediately,” the ministry stated. It will also issue all pending goods and services tax (GST) and customs duty refunds, which would benefit businesses, including micro, small and medium enterprises.
The other measures undertaken by the government to ease the liquidity problem of individuals and businesses include loan repayment moratoriums and cash transfers to the needy, distribution of additional grain and pulses to the poor. This comes at a time when businesses across the country are facing the challenge of paying wages to their workers with dwindling revenue streams during the lockdown period.
“The Government of India has been responsive to the requirements of trade and industry since the industry, especially the micro, small and medium enterprises, required funds urgently and this will certainly help,” commented Chandrajit Banerjee, director general of industry body, the Confederation of Indian Industry (CII).