Tamil Nadu All Entrepreneurs’ Federation (TAEF) representing MSME and traders’ associations across the State has expressed its solidarity with the complete shutdown ‘bandh’ to be observed by entrepreneurs in Madurai and Virudhunagar districts on November 29, demanding complete withdrawal of 18 per cent GST on rent.

Citing closure of up to 50 per cent of MSME units in Tiruppur and elsewhere since 2010-11 due to unfavourable policies of the Central and State governments, M.P. Muthurathinam, TAEF Chairman, apprehended that the 18 per cent rent on GST would further squeeze the MSME sector.

The TAEF would give a call for a State-wide protest if the grievances of the MSME units were not addressed, he said.

Absence of any scope for MSMEs and other units with annual turnover lesser than ₹1.5 crore to claim Input Tax Credit had caused dismay.

The policy of the governments to offer freebies and extend concessions of large-scale industries on the one hand, and keep increasing the tax burden on the MSME sector was not acceptable, Mr. Muthurathinam told mediapersons.

Escalation in power tariff by the State government coupled by six per cent year on year increase in property tax, and continuous rise effected in professional tax and garbage tax by the local bodies had crippled the MSME sector, Mr. Muthurathinam said.