The Hindu Business Line : Trade and industry bodies welcome Kerala Budget

Kochi, March 6 The trade and industry here have welcomed the State Budget, saying that it is in the right direction by providing several welfare schemes for various sections of the society.

Mr Umang Patodia, Chairman, CII, Kerala State Council, said that efforts to promote public-private partnership in infrastructure development, revamping of PSUs, financial support for KSRTC, and BIFR model institutional set up for SME sector would go a long way in improving and promoting an efficient administration.

Fast track assessment procedure, one-time settlement, simplification of compounding procedure, etc would facilitate better tax compliance and tax revenue realisation, he added.

Mr Jose Dominic, President of the Cochin Chamber of Commerce and Industry, said that though the government’s intention to promote infrastructure development is a welcome step, much more needed to be done in the State to keep pace with the times.

Agriculture sector

Following the Union Budget, the State Budget too has emphasised the need to promote the agriculture sector in the State especially traditional sectors like coir, cashew, fisheries, handloom, etc, he said. Kerala’s environment is something that needs to be specially taken care of. The Chamber felt that there should have been greater emphasis on a sustainable and green growth pattern for Kerala, he said.

Mr R. Mohandas, President of the Indian Chamber of Commerce and Industry, said that the Finance Minister has positively responded to the Chamber’s suggestion to introduce an amnesty scheme for disposing of arrears of all taxes to be collected by the Commercial

Taxes Department under the KGST Act up to the assessment years right from 1991-92 to 2004-05; to conduct this setting up of a fast track adalat on the Ernakulam model; and to extent the reduced rate of 4 per cent tax for cashew kernels to roasted and salted cashew nuts etc.

However, the Chamber said that the proposal to limit the set off input tax and refund given on inter-State stock transfers to amounts in excess of 4 per cent is against the spirit of VAT regime.

Land Bank

Mr A. P. M. Abdul Rahim, State President of the Kerala State Small Industries Association, said that the proposal to set up a Land Bank in the State for industrialisation is a welcome step.

The proposal for a one-time settlement for those with sales tax arrears will benefit the SME sector a lot. Likewise, the tax exemption given to carry bags, printing materials, handlooms, cotton will benefit the small and medium enterprises in the State.

More Stories on : Budget | Kerala

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page