Industry bodies express disappointment

Chennai, Feb 28 (UNI) Various industry bodies, including the Southern India Chamber of Commerce and Industry (SICCI) and Confederation of Indian Industry (CII) here today expressed disappointment over the Union budget presented by Union Minister for Finance P Chidambaram today in the Parliament saying it was not 'growth oriented'.

Talking to UNI here, SICCI president S Ramanathan stated that the overall Union Budget for the new financial year was 'disappointing' and 'not growth' oriented.

He said the "amount allocated for sectors like automobile, agriculture, education and health was less than the expected" "Apart from this, the main area of disappointment was in the increase in tax on dividend given by mutual funds", he pointed out adding "this would affect not only the business circle but also the comman man".

While pointing out Mr Chidambaram's announcement of increase in the revenue through tax payers, Mr Ramanathan said "in this context the finance minister should have brought the taxes down in various areas".

On the Health sector, he said "while allocating more money to eradicate polio, Mr Chidambaram should have also sanctioned more money to control AIDS in the country".

CII President Virendra Gupta also mentioned that the new Budget was development oriented only for agriculture, education and health not for the Indian Industry.

"We expected a lot in this Budget, but unfortunately there was not much for the industry ", he said, adding given the current status of finedoing by the industries, Mr Chidambram would have added more benefits to the industry sector in the country.

Meanwhile, other industry bodies such as Andhra Chamber of Commerce (ACC) and the Madras Chamber of Commerce and Industry (MCCI) too expressed dissatisfaction over the new Budget.

ACC President P Rathore, in his reaction, said "the Union Finance minister could have avoided levying of service tax on renting of immovable property and works contract, which will have an adverse impact on industry and trade".

However, Mr Rathore pointed out that the increasing threshold limit for service tax up to Rs 8 lakhs would save the small service providers from the hardship they were facing.

According to MCCI president A Sankarakrishnan the budget was not really addressing the inflation rate."The proposed complicted taxes in the new Budget would really confuse not only the common man but also the business circle", he asserted.

UNI