FICCI hails positive budget features

Ahmedabad, Feb 28 (UNI) With the primary focus on education, health care and agro sector it is a positive indication towards capacity building of human resource and enhancement of rural economy, FICCI Chairman, Gujarat State Council, Amit Goradia said.

Reacting to the Union Budget 2007-08, he said that schemes like Bharat Nirman and National Rural Health Mission are step in the right direction. Keeping inflation in mind and increasing SSI excise limit from Rs one crore to Rs 1.5 crore are welcome signs, he said in a release here today.

It is sweet music for gems and jewellery sector, especially the diamond polishing industry, as the duty reduction in both on cuts and polished diamonds and also on rough synthetic stones would go long way to help this sector, Mr Goradia said.

He said that the increase in technology upgrade fund (TUF) scheme from a provision of Rs 535 crore to Rs 911 crore will benefit the textile industry in terms of skill development for human resource and for technology upgradation to match up with international competition, he said.

Also increase in service tax limit from Rs four lakh to Rs eight lakh is a positive sign for small service provider, Mr Goradia said.

However, the deplorable aspect of the budget is the increase in cess, dividend distribution tax etc and thereby increasing the complications in the direct taxation of companies, the release added.

UNI