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`An inclusive Budget', say industry circles
Our Correspondent
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Falls short of expectations on corporate tax; not much done on service tax front
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Mr Ligi George
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Madurai
March 1
The industry and trade circles here have described the Union Budget 2007-08 as `an inclusive budget'.
Mr Ligi George, Chairman, Confederation of Indian Industry (CII), Madurai Zone, while welcoming the focus on agriculture, education and skills development as the most appropriate aimed at an inclusive growth in the economy, said the budget fell short of expectations on corporate taxes.
The efficacy and efficiency of the administration in implementing the schemes will remain the key to the outcome, he further said.
In a statement here, he said the innovative concept of tax-free infrastructure bonds for state pooled finance entities was a positive step for urban infrastructure. While the Finance Minister must be complimented for his adherence to fiscal targets, an opportunity for tax reforms has been missed, he added.
The revenue buoyancy could have supported a reduction in excise duty across the board, paving the way for achieving a composite GST rate. The move to manage the cement prices will lead to unaccounted transactions. Under direct taxes, irritants of MAT, FBT and surcharge could have been removed. Instead, they have been further extended to areas not appropriate, Mr George said.
Mr S. Rethinavelu
Mr S. Rethinavelu, President, Tamilnadu Chamber of Commerce and Industry, in his reaction to the Budget, while welcoming the stress on agriculture aimed at achieving an annual 4 per cent growth and the steps taken to bring down the rising prices of essential commodities and contain the inflationary trend in the economy, as reflective of an inclusive growth process, said the initiative on the cement front should have been supplemented by efforts to bring down steel rod prices to prevent the rising building input costs. He also emphasised on the need for an upward revision in the excise exemption limits for the SSI sector to at least Rs 3 crore instead of Rs 1.5 crore as envisaged in the Budget.
He said the trade and industry was unhappy that their demand for withdrawal of levy of service tax on Goods Transport Agency or removal of the levy on partnership firms and extension of the exemption limit for consignors and consignees liable to pay the service tax, has not been heeded to by the Finance Minister. He also strongly objected to the levy of service tax on rentals of commercial buildings.
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