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Chambers of commerce in Karnataka have welcomed the allocation of Rs 500 crore for SIDBI refinance but are not satisfied with those towards small scale industries and other sectors.
With regard to taxes, the Federation of Karnataka Chamber of Commerce and Industry (FKCCI) said it is matter of concern that its request to bring down the MAT to 10 per cent has not been not considered.
Also, it is not happy that the Federations of Chamber of Commerce and Industry, all over the country, are not taken out of the income tax and service tax purview.
In a release, Mr N.S.Srinivasa Murthy, President, FKCCI, said: “Support to Micro Small and Medium Enterprises (MSME) by allocating Rs 5,000 crore to SIDBI and Rs 3,000 crore to Nabard would help in meeting the capital requirements of the MSME sector.”
The Karnatak Chamber of Commerce and Industry (KCCI) reacting to the budget said: “Increasing MAT from 18 to 18.50 per cent is matter of concern. This move is likely to impact 130 goods, mainly consumer goods.” Mr Kotekar, secretary of KCCI, said: “We welcome the move to continue the subsidy on kerosene, gas and fertiliser. Providing direct subsidy to poor sections of the society and attraction of FDI is a welcome move.”
Mr Basavaraj Javali, Vice-President, Belgaum Chamber of Commerce and Industry, (BCCI) said: “The central budget was generally appreciable as there was no hike in excise duty and 23 per cent hike in infrastructure spending which will boost the economy. The budget expectations for small scale industries are not to the mark as we contribute to the government in tax collection and employment generation.”
“The budget allocation made for SIDBI refinance of Rs 500 crore is very less. The IT exemption should have been 2.5 lakh,” he added.
The FKCCI said it is satisfied on the note that the GDP in 2011-12 is expected to cross the 9 per cent growth with all the policy initiatives that are envisaged in the budget.
Taming deficit
It welcomed the efforts to bring down fiscal deficit from 5.6 per cent to 5.1 per cent and that it will be further reduced to 4.6 per cent in 2011-12. “This is a welcome measure in making the economy stronger.”
FKCCI also said that action recommended against corruption and black money is taken up seriously and that the Union Finance Minister has agreed to undertake a five fold strategy to tackle these issues.
Mr Srinivasa Murthy expressed satisfaction that at least now, the Union Finance Minister has assured that the DTC and GST would be implemented from April 1, 2012.
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