The Hindu : Tamil Nadu News : Farmers, traders hail Union Budget

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Tuesday, Mar 01, 2005

Tamil Nadu

Tamil Nadu

Farmers, traders hail Union Budget

By Our Staff Reporter

THANJAVUR FEB. 28. Farmers, traders and industrialists of Thanjavur and Tiruvarur districts, by and large, have welcomed the Union Budget presented by the Union Finance Minister, P.Chidambaram, for the year 2005-2006 in the Parliament today.

S. Ranganathan, Secretary, Cauvery Delta Farmers Welfare Association, said that it was a "fair budget" as "the Finance Minister had tried to do justice to all sections of the society."

With respect to co-operative banks, the Finance Minister gave indications about their revamp and rehabilitation. But the indication should turn into deeds, Mr. Ranganathan said.

A. Giri, vice-president, Thanjavur District Small and Tiny Industries Association, said that the budget was "favourable to small scale industries."

Rationalisation of Central Excise levy on small scale industries (SSIs) with modification in exemption limit would be beneficial to the SSIs.

"Announcement regarding the introduction of a SSI Development Act answers the long pending demand of the sector," he added.

Introduction of exemption to small service providers will be helpful. Excepting conditional investment. However, the introduction of tax on withdrawal of money more than Rs. 10,000 will hit common man.

V. Durai Manickam, General Secretary, Tamil Nadu Farmers Association, said that the import tax exemption given to import of agriculture produce would hit the production.

There was no mention about procurement also. Government should procure agriculture produces from farmers at a reasonable price.

The fund allotted for agriculture research seems to be meagre.

However, the allotment and commitment shown for infrastructure development in rural areas is a welcome move, Mr. Durai Manickam said.

One aspect of Union Budget, which came in for serious criticism from all quarters, was the tax levied on withdrawal of money from bank.

"It is unfair to pay tax for the amount we deposit and withdraw from banks. Moreover the limit Rs.10,000 is aimed at taxing more people as everyone withdraws more than Rs.10,000 every day," said Prof. Ilavazhagan.

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