Expectations not met, says BCCI President, Ashok Wadhwa

Mumbai, Feb 28 (UNI) The Bombay Chamber of Commerce and Industry (BCCI) has welcomed the declaration of the Finance Minister to develop Mumbai into a world-class 'International Financial Centre' (IFC).

Commenting on other aspects of the Budget, the BCCI President, Ashok Wadhwa said ''While the macro-economic variables seem to be in consonance with set targets, the Union Budget throws up some difficult propositions on the micro side.'' The corporate sector is already reeling under the pressure of escalating costs for employee retention and real estate - the charge of Frienge Benefit Tax (FBT) on Employees Stocks Option Plans (ESOPs) and extension of Service Tax on commercial property would further impact industry, he said.

Wadhwa appreciated the reduction in CST by one per cent as a step towards introduction of GST in the year 2010. However, the imposition of Service Tax on Works Contracts would lead to double taxation, in view of such contracts being already liable to VAT.

UNI