BCCI terms budget "routine", "not corporate friendly"

Kolkata, Feb 28 (UNI) Calling the budget "routine" and not very "corporate friendly", Bengal Chamber of Commerce&Industry today said the budget has focussed on infrastructure and social security.

Speaking at a press conference here, the Chamber President S Radhakrishnan said,''Finance Minister P Chidambaram in his budget 2007-08 has substantially hiked allocations for social sector. This is an welcome move.'' He also welcomed the higher allocation to education and measures taken to boost the agricultural production.

However, he expressed resentment over levying of Fringe Benefit Tax (FBT) on Employee Stock Option Plan (ESOP). ''This would impact the Information Technology industry in the country. FBT had always been the motivating factor for the employees from the corporate point of view.'' he said.

He said, '' We are surprised on introduction of Minimum Alternate Tax. The tax exemptions given to companies under Section 10A and 10B for all SEZs and STP units will now be subject to MAT.'' Speaking about the tax regime, Pallav Gupta, also a BCCI member, said the rationalisation step by increasing the threshold limit in excise duty from Rs one crore to Rs 1.5 crore and for service tax from Rs 4 lakh to Rs 8 lakhs per annum will be a good relief to small tax payers.

UNI