AIAI expresses mixed reaction to Union Budget

Mumbai, Feb 28 (UNI) The All India Association of Industries (AIAI) today expressed mixed reactions to the Union Budget 2007-08 and said the Union Finance Minister could have done better.

President of AIAI, Mr Vijay Kalantri told UNI, ''Various excise incentives on readymades, food mixes, reduction on excise on petrol and petroleum products as well as doing away with import duty on steel scrap and cooking coal are steps in the right direction. Also, introduction of rural bonds, increase in farm credit and support to NABARD by hike in bond limits will benefit the small scale industries (SSI) sector and also generate employment.'' However, he was critical of some other measures adopted by the Finance Minister.

''The excise exemption hike announced from Rs 1 crore to Rs 1.5 crore to SSI sector should have been enhanced to Rs 2 crore. Also, the extension of MAT 10 A and 10 B may adversely affect the EOU and IT sector. Besides, the increase in dividend distribution tax and extension of tax to mutual fund will adversely affect the capital market and investors,'' he opined.

The AIAI was also of the opinion that the Finance Minister could have given a boost to the manufacturing sector by introduction of investment allowance, which would have generated the much needed employment in the sector.

UNI