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Reacting to the Karnataka budget, industry and chambers of commerce said the thrust sectoral allocations do not reflect the ground realities and regional imbalances continue to haunt the state.
H.V. Harish, Senior Vice President, Bangalore Chamber of Industry and Commerce (BCIC), said, “The economic growth of the state is pegged at 5.9 per cent for the year 2012-13 which is lower than the previous year which was at 6.5 per cent. This is a great cause of worry and we hope that this trend would get reversed soon”.
However, he further added that it is heartening to note that despite the sluggish economic growth witnessed by the State in 2012-13, there has been an upward trend in the State’s tax revenue due to increase in tax rates and better compliance.”
Lakshminarayan, President, BCIC welcomed the State’s thrust on the overall development of Bangalore through the budget. “It is also a lost opportunity in several areas to boost economic growth especially given the dip in the State’s GDP growth rate.”
Lakshminaryan also said the allocation of Rs 1,300 crore to the transport department is grossly inadequate for the development of urban and rural transport and the chamber is not sure how much of the central projects for urban development is being leveraged to effect improvement.
FKCCI
K. Shiva Shanmugam, President, Federation of Karnataka Chamber of Commerce and Industry (FKCCI), while thanking the Chief Minister for the minor relief of taxes on small units, said “that no impetus has been given to trade and industry and they have not been favourably considered in the budget presented today.”
Some of the essential areas relate to Trade and Industry such as reduction of Entry Tax on diesel, reverting back of VAT to 5% and 14% with immediate effect or w.e.f. 1st April 2013, reducing the age limit of Sr. Citizens from 65 years to 60 years under the Profession Tax Act etc., has not been considered.
Kassia
“The highly hopeful MSE sector, which worked hard in the last couple of months to lessen the burden of trade license, propelled by high hopes today stand totally disappointed at the budget outcome,” said A Vijayendranath, president, Karnataka Small Scale Industries Association (kassia).
“Only the frequency of payment of Trade License has been moderated to once in five years instead of abolishing it. Surprisingly there is nothing in the budget to boost neither the MSE development nor the morale of entrepreneurs,” he added.
The budget has initiated the process of weakening the MSE sector and to nullify the tireless work done by the entrepreneurs during the last couple of decades. Even the tax reduction request to local Government supply pleaded by the MSE sector, has not been responded, he further added.
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