The representatives of trade and industry bodies on Saturday welcomed the Union Budget calling it a “balanced budget”. They praised the focus on social security, infrastructure development, agriculture and tax reforms, but said that not much has been done to benefit the individual tax payers.
Confederation of Indian Industry Rajasthan chapter vice chairman RK Poddar said the budget indicated progress towards the Union government’s ‘Make in India’ campaign. “Union finance minister Arun Jaitley has touched all the areas and tried to do his best with the existing situation. The results would come in long run. The inflation will increase with the increase in service tax,” he added.
Director of a medium-level industry, Lalit Ahuja, said, “No major announcement has been made, but direction is positive and it is to be seen whether it becomes a reality or not.”
CII Rajasthan director Nitin Gupta said the budget has focussed on infrastructure, agriculture and social sector with projects based on publicprivate partnership. He said increasing service tax is a step towards GST.
PHD Chamber of Commerce Rajasthan Committee chairman GS Singhvi said the Union finance minister has presented a balanced budget aimed at growth in industrial as well as farm sector.
Important point of the budget was postponement of General Anti Avoidance Rule (GAAR), which will bring fresh inflows. Also, the announcement that GST will be introduced from April 1, 2016, will definitely rejuvenate the industry.
However, it would have been better if the income tax exemption limit has been raised up to 3 lakh. Increase in the service tax from 12.36% to 14% will be a burden on common man making almost all service expensive, he added.
Federation of Indian Chamber of Commerce and Industry (FICCI) Rajasthan State Council chairman Jai Singh said the proposal to reduce corporate tax to 25% over next four years and doing away with incentives thereby bringing it at par with the global standards, limiting distortions and litigations is a welcome step. Replacement of wealth tax with additional surcharge of 2% is a smart move to bolster revenues and ease administration.
Jaipur Chamber of Commerce and Industry honorary secretary Ajay Kala, however, said there was disappointment among the bullion traders for not reducing 10% import duty on gold.
“But overall the budget was development oriented,” he added.
Rajasthan Khadya Padarth Vyapar Sangh president Babu Lal Gupta said the BJP government at the centre came to power with the promise that they would reduce the inflation, but there was no effective measure in the budget to reduce the inflation.