The Hindu : Antony assails Budget, chambers welcome it

Online edition of India's National Newspaper
Wednesday, Feb 04, 2004

Kerala

Kerala

Antony assails Budget, chambers welcome it

By Our Special Correspondent

THIRUVANANTHAPURAM, FEB.3. The Chief Minister, A. K.Antony, has charged the Centre with having completely ignored the State in its interim budget. He said here today that he was conveying his protest to the Centre.

Meanwhile, the Cochin Chamber of Commerce and Industry has welcomed the measures announced by the Union Finance Minister and expressed happiness at the fact that existing tax structure will continue and that no new taxes have been announced.

The thrust areas declared by the Finance Minister were great importance as far as the development of the economy was concerned, the Chamber president, N. R. Pai, said today.

The improvement of infrastructure, fiscal consolidation, employment generation and greater emphasis on improving agricultural infrastructure were welcome measures. The service tax procedures were to be simplified and it should be welcomed. The 50 per cent reduction in Central Government stamp duty rates, the reduction of customs duty on baggage and the increase in the free baggage allowance were also encouraging, he said.

The tax holiday announced for foreign business process outsourcing companies should provide the necessary impetus for the growth of this sunrise sector in the economy, Mr. Pai said.

The Indian Chamber of Commerce and Industry president, P. M. Muralidharan, said the Budget contained welcome measures for poverty alleviation, crop loans at reduced rate of interests with proportionate collateral security, formation of National Cattle Development Board, health sector improvement, user-friendly tax administration with regards to customs and central excise and extension of capital gains tax exemption.

He, however, said one of the medical colleges in Kerala should have been upgraded to the level of AIIMS under the Prime Minister's Swasthya Suraksha Yojana. Kerala should have been included as one of the venues for global standard international convention centres considering its well-recognised tourism potential. The revival package for tea industry was a noteworthy proposal . Along with this, it was essential to evolve special schemes for the promotion of internal tea trade and exports.

Apart from the proposals for making available credit at reduced rates to encourage the development of small scale and self-employed ventures and conditional avoidance of double taxation for BPO, there were no specific proposals to help employment generation, he said. It would have been a great relief to the distributive trade if a reasonable reduction in the bank rates was granted to that sector through Budget. The reduction in the existing stamp duty by 50 per cent on all Central Government stamp papers and the proposal to have a comprehensive reform of the entire stamp duty regime including the threshold for payment of stamp duty on receipts were also welcome. Mr. Muralidharan, however, said the fiscal deficit of Rs.136,452 crores was "alarming."

The Calicut Chamber of Commerce and Industry welcomed the Budget terming it as "satisfactory on the whole." The Malabar Chamber expressed disappointment that there was no change in the taxable income limit and the expectation that it would be raised to Rs. 1 lakh has been belied. However, it expressed satisfaction that the agriculture sector would get a boost through the sops being offered. It said it was sad that the Karipur airport was not accorded international status and the Calicut Medical College the AIIMS status. The initiatives for a friendly tax administration and simplifying procedures for filing tax was also welcomed.

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