Bangalore, July 11, 2014 – Sri S. Sampathraman, President FKCCI while welcoming the Budget on its positive steps in right direction has said that in the short duration of 45 days reframing the financial structure for the betterment of the economy, the Finance minister has attempted his best in presenting a growth oriented budget. This is a clear departure from the appeasement approach.
The budget is growth friendly and a serious thought put in place for the increase in GDP.
The first budget of the BJP Government presented by the Union Finance Minister is in tune towards paving way to “acche din”. The concern on reviving growth in manufacturing Sector is a step towards additional revenue generation and employment creation. Steps to provide stable taxation regime, investor friendly tax sops and attempting to delete retrospective amendments are welcome measures boosting investor’s confidence which is the need of the hour.
With a view to effectively managing expenditure in curtailing CAD, the setting up of management commission is a step in right direction. Integration through e-platform of all ministries and government departments expediting citizen services allows for transparency, removal of administrative bottlenecks.
On Indirect taxes, a step to boost the domestic manufacturing sector imposing import duty on certain industrial inputs and special additional duty on electronic items is expected to encourage the indigenous manufacturers.
On Direct taxes, rationalization of tax laws to reduce litigation is supportive for tax payers and allows for speedier disposals of pending cases. Increase in the exemption limits is a good initiative for the tax paying citizens suffering from increased cost of living.
The industry’s expectations in the introduction of road map to Goods Service Tax (GST) has been well addressed though much needs to be done in terms of its consent from states, agreement on compensation and passing of Laws at the Centre and the States. Reviewing of Direct Tax Code 2010 in consultation with the stake holders do augur well.
Freezing taxes, reducing deficits, making strategic investments and reduction in duties in some areas, are some of the salient features including relooking of the transfer pricing policy, are encouraging and conducive to growth.
The other highlights of the budget like skill development programmes, development of Industrial clusters, setting up of funds for startup companies, exit policy for industries, funds for renewable energy development, allocation for new ports and development of mining in Karnataka, thrust on tourism, are some of the quality measures which needs to be implemented in time bound frame.
Lastly, there is enough emphasis to agri-growth, rural housing, power for every home, toilets and drinking water for rural areas are all worthy of appreciation.
Making impossible possible in the shortest possible time, the industry feels the budget presented looks proactive and a wholesome step in the growth verticals which was lagging over a decade. CCI Newswire
