The spread of Corona is affecting the world economy.  The outputs are this decade’s lowest, there is shortage of many products and more than the pandemic, the panic is driving everyone crazy.

The affected countries are China, Italy, Iran, USA and many more others are also following the road.  USA has declared it a national emergency and Italy is in complete lockdown.

The country-wise details of measures taken & incentives SOPS given to tackle economic recession further driven by COVID-19.

• Australia: Australia has declared 17.6 billion packages to be disbursed in stages till July for welfare.  Recipients – Pensioners, Caregivers, Veterans, Family, Young People & Job seekers will get $750.  Tax break for small businesses.  Tax relief for small businesses.  One-off cash payment for welfare recipients & money to help keep apprentices at work.7 lakhs for a medium business will receive cash payment between $2000 & $ 7500/- to pay wages or higher extra staff 6.7 billion package has been marked for it.  $1.3 billion package to keep payments to apprentices in jobs. $ 1 billion for tourism sector. Company with turnover up to $5000 million for maximizing investment of $30,000 extended instant right off.  Where they can claim stax break on what they spent this will be allowed over a period to companies with turnover of $500 assets, write off allowed upto $1,50,000/-. $2.4 billion for healthcare & fight coronavirus.

• China: The People Bank of China (PBOC) on 3^rd February, the bank expended a reverse repo operations by $ 174 billion, it added $71 billion on 4^th February, the Chinese authorities on 5^th March allocated 110.48 billion Yuan ($ 15.93 billion) for coronavirus-related funding , on 13^th March China central bank launched $79 billion stimulus to help the country’s ailing economy.  The People Bank of China cut reserved recruitments for Banks which free $78.8 billion in funds that will aid the firms affected by the COVID -19 outbreak.

• France: France govt has landed on massive & exceptional incentives to pay the workers who have lost jobs due to coronavirus. The president guaranteed 300 billion euros ($ 335 billion) worth of loans to help the business get through coronavirus crisis. It also announced that it will mobilize 45 billion euros ($50.22 billion) in crisis measures to help company afloat.

• Germany: On 14^th March Germany announced to provide stimulus package upto 550 billions euros ($ 610 billion) to companies hit by coronavirus.  The Govt relaxed tax norms for German enterprises hit by pandemic, the companies are now allowed to defer billions of euros in tax pre-payment. The German govt expanding its subsidies to compensate jobless people. The state of Bavaria which houses BMW and Siemens has launched fund of 10 billion euros (11.1 billion) to buy stakes in companies struggling due to outbreak.

• Indonesia: Indonesia Govt has announced 10.3 trillion rupiah ($ 727 million) rescue & support tourism in the country. It followed 2^nd stimulus package of 120 trillion rupiah ($8.1 billion) to support economy amid the COVID-19 outbreak. 22.9 billion rupiah allocated to aid loan disbursement towards business affected by the pandemic, further 30% corporate tax discount for 6 months.  The Manufacturing sector with income below 200 million rupiah could be exempted from paying Income tax for upcoming 6 months, some funds from the rescue package for social welfare & rural development & to boost household expenditure.

• Italy: Italy has recorded the highest death due to coronavirus pandemic has announced a rescue package of 25 billion Euros ($28 billion) on 16^th March, this package shall include 10 billion euros to support employment. 3.5 billion to strengthen healthcare & individual cash bonus to Italians still working during the countrywide lockdown.  The package includes loan guarantees to small & medium businesses hit by the crisis. The Italian govt also handed out measures for financial relief to citizens. Italian families can now apply for permission to suspend the mortgage payment if business shutdown due to coronavirus threaten their livelihood, additionally monthly subsidy of 600 euros have been announced to 5 million workers including those self-employed & seasonal workers.
• Parents have been entitled to claim 600 euros from the govt to pay babysitters amid the COVID-19 Pandemic.

• Japan: Japan announced two rescue packages, one for $ 4.6 billion in February & $ 15 billion in March. The most recent spending includes $ 4 billion for a number of programs including increasing mask production & stopping the virus from spreading to nursing homes.

• Malaysia: Cabinet has approved financial stimulus to tackle COVID. 20 billion Malaysian ringgits ($ 6.6 billion) and further announced travel agencies, hotels, airlines & shopping malls will get 15% discount for 6 months beginning from April on electricity bills. Hotels exempted from service tax till august. Public transport, drivers & tourist guide affected by COVID will get 600 Malaysian ringgit each. Doctor, medical staff who are involved in containment of coronavirus will get special monthly critical allowance of Malaysian ringgit 400 each from February to end of the outbreak.  Immigration & frontline workers will receive allowance of 200 Malaysian ringgit.

• New Zealand: New Zealand has announced amount of 12.1 billion New Zealand dollars ($ 7.3 billion) stimulus package to fight the pandemic. Out of this amount, 5 billion New Zealand dollars will be allocated for wage subsidies, 2.8 billion New Zealand dollars for income support. 2.8 billion New Zealand dollars for business tax relief. 600 million US dollars for Airline Industry.

• Northern Ireland:  Northern Ireland has announced an emergency financial assistance of 100 million pounds to help business impacted by COVID -19. All businesses hit by virus will pay 0 taxes for next 3 months.  Besides, govt has approved deferral of rate bills for the residents of Northern Ireland.

• Saudi Arabia: 50 billion riyals ($ 13.3 billion) to help private business survived corona pandemic. Small and Medium business will also be supported by loan guarantee scheme of 6 billion.

• South Korea: A stimulus package 11.7 billion won($ 9.8 billion) is unveiled to protect the economy & business from COVID mayhem. Medical institutes have been allocated 2.3 trillion won for struggling business & child care subsidy 3 trillion won allotted. Loan will be granted on relaxed terms. People loosing jobs due to epidemic will be retained.

• Spain: Spanish Govt has marked 200 billion euros ($ 2020 billion) to fight Coronavirus epidemic. It is the largest financial aid in the country’s democratic history, out of this sanctioned 117 billion euros will be mobilized by the state balance will come from Private companies in Spain. The Govt also promised loan guarantee of 100 billion euros for small & medium sized business hit by the pandemic.

• Switzerland: The country has pledge 10 billion swiss franc ($ 10.5 billion) in aid for its companies. The program targets small business & freelancers who have been hit, enforced lockdown amid the coronavirus epidemic.

• Thailand: Thailand cabinet has approved $ 17.6 billion to help alleviate the impact of Coronavirus. The package includes 1500 billion baht of soft loans at 2% interest rate. Govt also announced to setup a 20 billion baht fund to help firms or workers affected by outbreak of coronavirus. Central bank urged to protect the debtors decided to offer relaxed debt repayment & lower interest rates for businesses suffering from COVID-19. Govt shall exempt import duties on materials used for making face mask.

• Turkey: A stimulus package of $ 15.5 billion announced in March in order to protect small business workers, exporters and pensioners from COVID-19 impact under the rescue package 3 months deferrals of loan payment by first further financial support to the companies affected by virus outbreak.  Social security premiums will be postponed by 6 months for retail, steel industries, shopping malls, entertainment & hospitality sector, food & beverage business, textile & event organization sector.

• Turkish government will increase the lowest pension payment to 1500 turkey lira ($231), further additional fund of 2 billion Turkish liras (3.08 billion) allocated for household in need.

• UAE (United Arab Emirates): has launched fresh initiative under “Ghadan 21” to help small & medium enterprises. The country has pledged $ 100 billion dirham ($ 27.2 billion) to fight the outbreak of coronavirus. The amount includes water and electricity subsidy for citizen & industries of 5 billion dirhams. The toll taxes curbed till the end of 2020. 3 billion dirhams allocated to SME Credit Guarantee Scheme. 1 billion dirhams for market funds to enhance liquidity, also 20% refund on rent paid by tourism & entertainment sector.

• UK:  UK has sanctioned 330 billion pounds ($ 434 billion) to fight the coronavirus pandemic, out of which 12 billion pounds for the national health services. The govt also has given loan guarantee to businesses created by coronavirus pandemic.  In addition, it has announced 20 billion pounds of tax cuts, 3 months mortgage payment holiday for borrowers affected by COVID-19.  Govt also waived of tax on non-domestic property for this financial year & insurers has been asked to payout the firms covered for pandemic. The Bank of England said it would setup new lending facilities for effected businesses.

• USA: Trump administration of US, on March 6^th 2020 US president signed a spending bill of $8.3 billion to fight the pandemic on 13^th March, the USA government announced state of emergency allowing the federal government to distribute upto $ 50 billion in financial aid to states, cities & territories on 17^th  March US has backend a plan to send cheques directly to Americans as a part of $ 1 trillion stimulus package – a dramatic step designed to cushion the impact of economic slowdown triggered by coronavirus. This package is to help the businessman & households.

• India :  The economic slowdown added with COVID impacted some of the sectors like tourism to completely shutdown and other manufacturing units, MSME on the verge of dying, however they are dealing with COVID stringently.  The Indian Govt has not given any stimulus incentives either to job losers nor to dying MSME, added to this some of the banks are closing down in the cooperative and private sector have increased the troubles of MSME and street business people.  The stock markets are falling down, the dollar rates increasing, exports and imports completely stopped but only some measures by way of tax package announced by Govt of India. further the announcements are coming today only on the following:
• GST Return filing has been extended for March, April , May to 30^th June 2020 with application of staggering date
• Taxpayers turnover exceeding 5 crore interest at 9% without late fee
• Taxpayers below 5 crores turnover, no late fee, no interest, no penalty, date for opting composition scheme extended to 30^th June 2020.
• Further the govt is still buying the options of extending compliance deadline for income tax return & annual returns of ROC.

Till date Indian Govt has not announced any stimulus package for companies or businesses, only advisory committee under FMO has been setup.

The trade business is worried as the entire business is getting shutdown & they are not in a position to pay wages with mounting pressure of EMI, Taxes & Interests on their loans. This situation in India is prevailing much before COVID-19. say more than 3 months. The economic slowdown had already made MSME slowdown & close down & now COVID is making all sectors to die. The relief given so far in the form of Tax sops are long term in nature and does not help the present crisis that MSMEs are in, need to address the present needs.

HENCE WE NEED A REAL-TIME STIMULUS PACKAGE WHICH WILL BE THE MUCH NEEDED OXYGEN TO INDIAN BUSINESS.

1. A STIMULUS PACKAGE OF ATLEAST 5-25 LAKHS AS A PRE-RELIEF MEASURE TO MSME

2. Deferment of GST for One Year, Post One Year revive the situation, Grant EMI  

3. INCOME TAX HOLIDAY FOR A PERIOD OF ONE YEAR FOR MSME LESS THAN 5   CRORES TURNOVER.

4. INVESTMENTS ON FIXED ASSETS AS 100% DEPRECIATION AS INCOME TAX RELIEF FOR MSME, AT LEAST FOR 1 YEAR.

5. 50% OF THE SALARY REIMBURSEMENT FOR A PERIOD OF ONE YEAR AS STIMULUS PACKAGE TO MANUFACTURING AND SERVICE SECTOR, MSME UPTO A TURNOVER OF 3 CRORES

6. EMPLOYER-EMPLOYEE CONTRIBUTION FOR PF, ESI WAIVED OFF FOR A PERIOD OF 1 YEAR

7. RELAXED NORMS FOR ADDITIONAL LOANS WITH SECURITY BY GOVT GUARANTEE SCHEME UPTO 2 CR FOR MSME WITH TURNOVER OF 10 CR INTEREST NOT TO EXCEED 4%

8. RELEASE GOVT. AGENCY PAYMENTS WITHIN 15 DAYS

9. MORE INFRASTRUCTURE PROJECTS, CREATE OPPORTUNITIES

10. NO SCRUTINY, NO HARASSMENT FOR ONE YEAR.

SAFE GUARDING LIVES OF PENSIONERS, DAILY WORKERS, JOB LOSERS

WE PRAY THE HONOURABLE GOVT OF INDIA WHICH IS DOING IT’S BEST IN THESE TOUGH TIMES, BUT THE 10-POINT STIMULUS REQUESTED ABOVE IS THE NEED OF THE HOUR, OXYGEN TO SURVIVE.  IT MAKE TAKE 2-3 YEARS FOR MSME TO BOUNCE BACK BUT STIMULUS IS REQUESTED FOR A PERIOD OF ONE YEAR ONLY. MSME IS THE BACKBONE OF INDIAN ECONOMY.  VARIOUS SERVICE SECTORS WILL GIVE BACK 10 TIMES THE STIMULUS IF THEY SURVIVE TODAY. MSME’s ARE REQUESTING IMMEDIATE STIMULUS WITH FOLDED HANDS.

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