Trade, industry welcome budget

Kochi, June 23 (UNI) Trade and industry in Kerala today welcomed the first budget of the Left Democratic Front (LDF) Government, claiming it was 'quite unexpected' with many novel proposals.

The Kerala Chamber of Commerce and Industry welcomed many of the proposals, but took strong exception to enhancement of tax on luxury goods and termed the appointment of tax officials at shops as 'a retrograde step' that would lead to corruption.

The chambers President John K Paul said the hike in tax on luxury items would lead to disparity among the States and deflection of trade.

''Unilateral enhancement of rate is against the principles of VAT, as it is against uniformity in law and rate throughout the country,'' he said in a statement, while seeking its withdrawal.

Terming it 'quite unexpected', the Indian Chamber of Commerce and Industry here said the proposals for agriculture and traditional industries would provide some relief.

President Balagopal Pai said the budget had many novel measures to promote genuine trade like providing lottery tickets and incentives to the local bodies for preventing inter-state smuggling.

UNI JA CS KP1838