Kolkata, Jan 15 (PTI) Industry body Indian Chamber of Commerce (ICC) on Friday demanded higher interest subvention for micro, small and medium enterprises (MSMEs) on loans to boost employment generation in the country.

The city-headquartered chamber in its budget demand also called for simplification of personal taxation by lowering tax rates for greater compliance.

"The two per cent interest subvention scheme on loans has truly supported Indian MSMEs. We would like to propose that the scheme be further extended with enhanced coverage. We request the government to consider 3-4 per cent interest subvention to the extent of Rs 3 crore against the earlier Rs 1 crore," ICC president Vikas Agarwal said.

Since a key agenda of the interest subvention scheme for these enterprises is to get them on-board the GST network, the relaxation will help them come under the ambit of the indirect tax regime, he said.

Speaking about individual tax, ICC also said it is necessary to reduce the personal tax rates for individuals so that there is a degree of equity and fairness in relation to structuring decisions.

Dividend tax should also be capped at 15 per cent down from 20 per cent for resident assesses as well, Agarwal said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)