Trade, industry generally welcome budget
THE INDUSTRIES and business organisations largely welcomed the Union Budget presented by Union Finance Minister P Chidambaram, though they also pointed out certain shortcomings. Here is how the organisations reacted:india Updated: Mar 01, 2006 01:38 IST
THE INDUSTRIES and business organisations largely welcomed the Union Budget presented by Union Finance Minister P Chidambaram, though they also pointed out certain shortcomings. Here is how the organisations reacted:
CII - MP: Budget focused on growth, employment generation and bringing the rural India under the ambit of the growth process. Has set path for inclusive growth to boost employment generation. Go a long way to boost agriculture, food processing and the rural sector.
The Finance Minister has also given emphasis on developmental aspects of growth, which included substantial increase in outlay of 31% on education and 22% increase in outlay on health compared to the previous budget. target growth in the rural sector to enable the effect of growth trickle down to the “aam admi”.
PHDCCI - MP: Help to generate employment opportunities in MP. Chamber welcomes the announcement of a road map for the implementation of Goods and Services Tax from April 1, 2010. The industry was looking forward to the rationalisation of at least the fringe benefit tax. But FBT will continue to be levied on genuine business expenses including tour and travel and boarding and lodging.
The increase in the rate of Minimum Alternate Tax (MAT) is uncalled for since it will also increase the tax liability of companies with not so healthy bottomlines. Not much has been done by way of expenditure control by removal of non-merit subsidy and reforms in government administration.
FMPCCI: Overall, though the budget lacks innovative processes, it’s a good budget. Pronouncements to promote gems & jewellery sector, addressing the power sector and reduction in import duty & excise duty on large number of items, would stimulate industry and, lead to growth and employment generation. Industries Association, Govindpura: Progressive, development-oriented budget.
Service Tax limit should have been enhanced to Rs 10 lakh. Announcement on cluster development would be beneficial for MP, provided the state government plays a proactive role. Association of Industries, Mandideep: Addressing the agricultural sector, would lead to increase in GDP. Lot of comfort-level has been provided in textile sector, which the state could leverage upon. Two mega power projects in MP & CG – is a welcoming step.
Pithampur Audyogik Sangathan: Encouraging but not exciting. The budget has given thrust to the shinning sectors, which can also help the state. CST should have been 2%. State’s Pharma sector is bit depressed due to it.
Bhopal Stock Investors’ Association: Sentiment of the stock market remained bullish and we continue to be in bull market. Against apprehensions, the Security Transaction Tax increased by only 25%, which got absorbed in the market. Budget doesn’t have anything that could act as a damaging factor for the market.
Mahakoshal Chamber of Commerce & Industries: Moderate budget. It seems the finance minister has tried to do a balancing act of the sort. Widening the gamut of Service Tax and imposing tax on ATM services are a negative move. Nothing remarkable for SME sector.
Soybean Processors Association of India: By keeping the Customs Duty on Edible Oil unchanged, it would go a long way in providing the Oilseed farmers a remunerative price for his produce and encourage production of more Oilseeds in the country leading to better availability of domestic Edible Oil and less imports of Edible Oil, thereby saving valuable foreign exchange.
Institute Society of Training & Development: Increasing the area of service tax and taxing ATM service would affect every segment. No tax burden, therefore budget not harsh. We’ve to pay for governance, so whatever taxes have been introduced could be seen as a necessity.