GCCI Opposes cess on iron ore in the Central Budget

Panaji, Feb 28 (UNI) The Goa Chamber of Commerce and Industry has described the Union Budget as a ''social sector budget' that aims to benefit the society and does not put extra burden on the industry.

''We, however, regret the imposition of cess on iron ore since that would affect the mining industry in Goa to a large extent.

Since Goa produces low-grade ore which is not suitable for local steel industry and as mining is the mainstay of the Goan economy, Goa should have been exempted from imposition of the cess,'' GCCI president Nitin Kunkolienker has said.

The inflationary trend witnessed during the last fiscal was an indicator of industry growing at a high rate and not really result of shortages. Since tax collection was good during the last fiscal, the Government felt that no concessions to the industry were required in the current fiscal, he said.

Welcoming the proposal to remove surcharge on corporate tax on income below Rs one crore, he said excise duty exemption for small scale industries, increased from Rs one crore to Rs 1.5 crore, though not a substantial increase, would still help the SSI units.

He also welcomed the proposal for reducing the rate of Central Sales Tax and phasing out of Sales Tax and basic exemption for Service Tax increase from Rs 4 lakh to Rs 8 lakh as it would benefit most of the small service providers in Goa.

The proposed increase in education cess and dividend distribution tax were not actually expected. In fact, the industry was hoping that irritants like MAT, FBT and surcharge would be removed, he said.

Emphasis on education was a welcome step since it would provide adequate manpower to the industry to meet it requirements. The proposal for construction of 5 lakh more classrooms and employment of 2 lakhs more teachers will help strengthen the educated workforce.

He also hailed the proposals of providing one lakh jobs to the physically challanged, grants to backward regions, increased allocation for e-governance, scheme for modernisation of the traditional choir industry, and increased allocation for schemes of SCs and STs.

UNI