Bangalore, Jul 17 (UNI) The BJP's maiden budget in Karnataka, presented by Chief Minister B S Yeddyurappa today, received mixed reaction from the chambers of commerce.
Terming the budget as ''inclusive'', the Federation of Karnataka Chambers of Commerce and Industry said the high growth target set for the State was a welcome step. ''The budget targetting ten per cent growth as against nine per cent presented in the earlier budget, augurs well to meet the 11th five-year plan targets,'' FKCCI President D Muralidhar said in a statement here.
He said the announcement of a new textile policy to promote garment manufacturing had great potential for employment generation.
Establishment of food, cement, automobile and IT-BT zones in various districts was also welcome. Exemption of stamp duty and reduction of registration charges or the exemption of conversion would help the industry, he added.
Mr Muralidhar also welcomed setting up of a Skill Commission and the proposal to set up vision group for industrial development.
Investments in infrastructure in Bangalore and the other districts had come at a crucial time, he said.
''The expectation of trade and industry on issues like deviation of tax rates, abolition of entry tax on petrol and diesel and reduction in penalties are yet to be looked into. We welcome the reduction in VAT rates on plastic packing crates/cases and other consumer goods,'' he said.
The Bangalore Chamber of Industry and Commerce, however, labelled the budget as a 'damp squib' for industries.
''The State budget offers little to the industry. While the State and the country are in the grip of economic recession, one does not see any major investments by the State to improve immediate employment opportunities,'' BCIC said in a release here.
Largely, the industry had got nothing to cheer about and the minor tinkering of tax rates in the tax proposals would not result in rejuvenating the already depressed industrial climate, it said.
Welcoming the proposal for air connectivity among major districts, BCIC termed the allocations to spruce up Bangalore's infrastructure as meagre.
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