Coimbatore : The CPI is in the process of preparing a memorandum on the GST requirements tor the MSME sector, which is feeling the pinch of higher tax rates, the party MP-elect K Subbarayan said Saturday.

The MSME sector was seriously affected due to the higher GST rates in India, particularly Tamil Nadu, where more than 50,000 industries were closed in the last two years, Subbarayan told reporters here.

Winning from nearby Tirupur constituency, a hub for MSME and Knitwear industries, Subbbarayan asked whether the Centre was ready to come out a white paper on the status of MSME in the country after the introduction of GST, since there were reports that more than six lakh industries were shut.

The closure of large number of industries had rendered lakhs of workers jobless, which also resulted in the higher unemployment rate during the regime, he pointed out.

The party wanted a flat five per cent GST for the MSME sector, to revive the industries, which would also help more employment generation, he said, adding that the memorandum.will be submitted to the Government by all the MPs elected from Tamil Nadu, Subbarayan said.

Subbarayan, who is also deputy secretary of the party in Tamil Nadu, reiterated CPI’s stance on exempting the State from NEET, which has taken a toll of four students who failed to quality, He also blamed the State government for not planning properly due to which Tamil Nadu is facing acute water shortage now.