Thinking small

Preference for small-scale firms isn't a good idea

The drafters of the Union Budget 2017-18 would have been mindful of the pressure being faced by many small companies and entrepreneurs as a consequence of the decision to withdraw high-value currency notes from circulation. The demand destruction in demonetisation’s wake has made doing business difficult. It is understandable, therefore, that the Budget has targeted the micro, small and medium enterprise (MSME) sector for special attention — most clearly through its decision to create a different tax slab, with a 25 per cent tax rate, for companies with an annual turnover of below Rs 50 crore. The rest of corporate