The Hindu Business Line : KCCI hails Budget

The KCCI had requested the Government to provide adequate finance for the development of tourism in the State. In this regard, the Government has allocated Rs 40 crore for tourism development.

Apart from this, another Rs 5 crore has been allocated for publicity of tourism.

Fisheries

For fisheries sector, the Budget envisages increasing the supply of subsidised diesel from 55,000 kilolitres to 70,000 kilolitres.

Added to this, fishermen have the option to avail themselves of loans at 4 per cent interest. These are all welcome moves by the Government to improve the condition of fishermen in the State.

Welcoming the proposal to bring down VAT on surgical gloves from 12.5 per cent to 4 per cent, Mr Rao said the previous NDA Government at the Centre had abolished central excise on surgical gloves.

Reduction in VAT on surgical gloves was one of the major demands of KCCI, as these gloves play an important role in surgery and medical care.

Cashew

Mr Rao said the State Government should have reduced VAT on cashew kernels to 4 per cent from 12.5 per cent. There is no mention about this in the Budget.

Cashew industry is a major employer and exporter in the coastal belt. Over 35,000 women from weaker sections of society work in this industry.

While most of the cashew-consuming states have brought down VAT to 4 per cent, Karnataka — one of the major cashew-processing states — has retained 12.5 per cent VAT rate on cashew kernels.

Welcoming the Government's proposal to exempt Mangalore Refinery and Petrochemicals Ltd from resale tax on petrol and diesel and from entry tax on imported crude oil, he said the move would encourage the public sector undertaking to invest more in the region.