ICAI welcomes Budget as "anti-inflationary, pro-agriculture"

New Delhi, Feb 28 (UNI) The Institute of Chartered Accountants of India (ICAI) today welcomed Union Budget 2007-08 saying it addressed the critical issues of rising prices, investments in agriculture and infrastructure.

Describing the emphasis on agriculture as the crying need of the hour, ICAI President Sunil H Talati said the stress on raising power capacity, national highway and energy security besides a social security scheme for the unauthorised sector were also welcome.

Terming as anti-inflationary the cuts in customs and excise duties levied on a variety of products including on petrol and diesel, he warned that this may, however, lead to competition from cheaper imported goods.

On the proposal to increase the exemption limit from Rs 1 crore to Rs 1.5 crore for small scale industries, Mr Talati said it would give more operational freedom to the small scale sector while the extension of the TUF scheme would give fillip to textile sector and generate large scale employment for rural womenfolk.

While small scale service providers had got relief due to the increase in the exemption limit from Rs 4 lakh to Rs 8 lakh, the ICAI noted the small increase in the basic exemption by Rs 10,000 had been offset by an additional one per cent levy on education cess.

Mr G Ramaswamy, Chairman, Fiscal Laws Committee of ICAI, said the increase in dividend distribution tax and for mutual fund companies would have some consequences for small investors as also inclusion of ESOPs in FBT.

UNI