State budget most disappointing, lacks luster: GCCI

Ahmedabad, Feb 23 (UNI) Gujarat Chamber of Commerce and Industry (GCCI) today termed the budget for 2007-08 presented by State Finance Minister Vajubhai Vala as most ''disappointing and lacking in luster'' as far as the trade and industry of the state are concerned.

GCCI President Pankaj Patel, addressing reporters here this evening, said the budget statements did not give any response to the long standing demand of the trade and industry to do away with Octroi.

''Earlier we got positive response and assurance from the Finance Minister to our demand of Octroi abolition but it was missing in the budget announcement,'' he said.

He said Value Added Tax, which has been introduced in the state from April 1, 2006, has led to a 40 per cent rise in state revenues as compared to the average of 20 per cent when sales tax was in force. While Expressing apprehensions, Mr Patel said there is a lack of political will to do away with this cumbersome and controversial duty.

Regarding the relief granted under the electricity duty to the tune of Rs 223 crores which works out be only Rs 272 per consumer annually which is 'negligible' since the electricity rates are moving sky high. The budget also does not contain anything to neutralise the recent rise in the ''Jantry'' rates by 50 per cent.

The budget proposal have reduced the 1.5 per cent tax to 1 per cent on registration of documents but they have not considered making it an ad valorem amount as per the long standing demand of the trade and industry.

Mr Patel said on one hand the state is moving agressively to woo industrial investments in the state while they have yet to make required amendments in the land laws hence the relief given in the stamp duty is also unimaginative and not reflecting the state government's intention to make Gujarat a global economy.

He said Octroi Coordination Committee of the trade and industry in the state would call a meeting shortly to take stock of octroi abolition demand which was missing from the state budget proposal.

UNI