Financial Daily from THE HINDU group of publications
Saturday, Mar 02, 2002

Port Info

Group Sites

Industry & Economy - Budget
Government - States

`Let-down on personal tax front'

Our Bureau


WHILE the trade and industry have welcomed some of the initiatives taken by the Union Finance Minister, Mr Yashwant Sinha, in his Budget speech, there has been disappointment over the measures announced on the personal tax front.

Mr R. Vellingiri, President, Southern India Engineering Manufacturers' Association (Siema), Coimbatore, welcomed the measures to reduce the Customs duty on raw materials such as copper, zinc, lead and aluminium that would have a marginal impact. But the reduction in duty on imported raw materials and finished goods would put them in direct competition with the local industry. He said the removal of certain agricultural implements and products now reserved for the SSI sector would force them to compete with the multinationals. The expectation of the industry for IT concessions had been belied.

Mr A.V. Varadharajan, President, Indian Chamber of Commerce and Industry, Coimbatore, regretted that the Budget had again by-passed the demands of the textile sector in Coimbatore that had been in recession for years and even the sops announced were inadequate.

He said the Budget seemed to lack thrust and the inability of the Government to push through the reform agenda did not inject any optimism about economic growth.

Mr S. Amarjit Singh, former president, Federation of All-India Automobile Spare Parts Dealers' Associations, decried the move to reintroduce tax on dividend at the hands of the recipients. The cut in small savings rate would affect the consumer durables industry as the purchasing power of the people would be hit.

He said while the reduction in fuel prices was welcome, a cut in excise duty from 32 per cent to 16 per cent would give a stimulus to the ailing automobile sector.

Mr C.M. Jayaraam, Vice-President, Citizens' Voice Club, expressed disappointment over not providing IT relief to the salaried class people even though the Government had opted to reduce the interest rate on small savings.

Send this article to Friends by E-Mail

Stories in this Section
GM, Honda Feb sales up

Sinha for linking interest rates to inflation
Noose on trusts tightened
Thrust to infotech, biotech, infrastructure -- Kerala for new approach to 10th Plan
A clouded future
Lacks enough stimulus
`Budget will not spur industrial growth'
`Let-down on personal tax front'
Budget reactions
Mysore chamber hails focus on farm growth
`Bold steps in Budget to push reforms further'
`More burden on common man'
Encouraging for corporates: Karvy
Budget a mixed bag, says Bengal chamber
Capital goods sector has nothing to cheer about
Crisis engulfs Kolkata tanneries
`A fillip for hotel sector'
Not all gas, say LPG cos
`A let-down for pharma R&D'
No healing touch for pharma
State power sector reforms to continue
Steel still missing sheen
Sweet for sugar, bitter for industry
Budget to spur textile industry: Rana
Tribunal puts its seal on textile industry wage settlements
Textile sector shows different hues
SSIs sore over dereservation of 50 items
`Growth-oriented Budget'
Brewers in low spirits
Budget push for FMCG cos
The tax `n wane effect
Divestment target at Rs 12,000 crore
IPCL: Stakes high for Reliance, IOC
Rate cut a blow to small savers: Asim Dasgupta
Higher allocation `to boost' rural sector
`One can't have a road-map every year'
No field day for sports bodies
A shot in the arm for tourism industry

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line