High growth guidance for Karnataka is welcome: FKCCI

Bangalore, Jul 17 (UNI) Terming the maiden BJP budget presented by Karnataka Chief Minister B S Yeddyurappa as inclusive, Federation of Karnataka Chambers of Commerce and Industry today said high growth target set for the state is a welcome step.

"The Budget targetting 10 per cent growth as against 9% presented in the earlier Budget, augurs well to meet the 11th 5-year Plan targets," FKCCI President D Muralidhar said in a statement.

He said the announcement of a new Textile Policy to promote garment manufacturing has a great potential for employment generation. Establishment of food, cement, automobile and IT-BT zones in the various districts was also welcome, he said.

Development corridors and taking IT and BT sector to smaller cities would be beneficial, while exemption of stamp duty and reduction of registration charges or the exemption of conversion would help the industry, he said.

He also welcomed setting up of the Skill Commission and proposal to set up vision group for industrial development. So was the emphasis on implementation of Nanjundiah Committee Report and also the proposal for Mono Rail in Mysore, Mangalore and Udupi, he added.

Investments in infrastructure both in Bangalore and the other Districts had come in a crucial time, he said.

Mr Muralidhar said the representation of the FKCCI on issues concerning policy, reduction in tax rates have been partially considered.

"The expectation of trade and industry on issues like deviation of tax rates, abolition of entry tax on petrol and diesel and reduction in penalties are yet to be looked into. We welcome the reduction in VAT rates on plastic packing crates/cases and other consumer goods. We specially welcome the abolition of entry tax on ready made garments, which was a long-standing demand," he said.

FKCCI also welcomed reduction of penalty for delay in filing monthly return is appreciated but the penalty should have been only 1% as requested. Enhancement of profession tax limit for employees was long awaited. Dispensation of the requirement of filing annual VAT statements is a timely relief.

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