Budget pragmatic, in support of growth, says S K Nair

Bangalore, Mar 2 (UNI) Describing the Union Budget for 2006-07 as ''pragmatic,'' Central Excise Chief Commissioner S K Nair said that though the proposals were in support of growth, it was too early to analyse its implications.

Speaking after inagurating a workshop on ''Analysis of the Union Budget 2006-07,'' organised by the Federation of Karnataka Chamber of Commerce and Industry here, he said mobilisation of resources was expected to get a fillip by managing better the existing tax structures. The Budget would help to sustain the growth rate, pegged at 8.1 per cent per annum, he added.

Delivering the keynote address, Supreme Court senior Advocate V Lakshmikumaran opined that thrust had been given to impose duties and taxes on IT products which had been enjoying soft taxes all these years.

He said by enlarging the service tax arena, Union Finance Minister P Chidambaram expected to see over 30 per cent jump in revenue collection. His idea must be to get revenue to the exchequer from the sector, which contributed over 54 per cent to the Gross Domestic Product, he added.

Mr Lakshmikumaran also felt that the eventhough lawyers were excluded from the ambit of service taxes, they were actually in the tax net under the guise of Business Support Services.

UNI MV RG TS1248