Mr. K. Shiva Shanmugam, President, FKCCI, while thanking the Hon’ble Chief Minister for the minor relief of taxes on Arecanut Dehusking Machine, Coco Husk, Refractory Monolithic Powder, Domestic Containers (gruhabalake), Footwear costing up to Rs.200, Doors and Windows from Plastic Waste, Air Compressor and parts under list of capital goods increasing threshold limit for registration under Entry Tax from Rs.2 lakhs to Rs.5 lakhs; has expressed that no impetus has been given to Trade and Industry and they have not been favourably considered in the Budget presented today by the State Government.
Some of the essential areas relates to Trade and Industry such as reduction of Entry Tax on diesel, reverting back of VAT to 5% and 14% with immediate effect or w.e.f. 1st April 2013, reducing the age limit of Sr. Citizens from 65 years to 60 years under the Profession Tax Act etc., has not been considered. The importance given to Tier II & III Cities, Education, Urban Development, Women and Child Development, Health & Housing, Infrastructure for Bangalore, exemption of Paddy, Rice, Wheat, Pulses and Rice and Wheat products is a welcome sign, Mr.K.Shiva Shanmugam said.
Since it was felt that the Budget is not of much favourable to Trade and Industry and does not give any scope for promoting industrial growth in the State, FKCCI strongly urges the Chief Minister to re-look into the suggestions and submission made by FKCCI in the Pres-Budget Memorandum that was submitted to the Government of Karnataka, and make suitable amendments in the following areas:
- Outlay for Tourism sector was expected to be at least Rs.500 crores, whereas, it has been modestly increased to Rs.290 crores as against Rs.240 crores last year. This may be increased to Rs.500 crores.
- To reduce the burden of tax on diesel which will have a favourable impact on entire society and business.
- Reducing the rate of VAT to their earlier levels at 5% and 14% shall be with immediate effect or at least from 1-4-2013 instead of from 1-8-2013.
Overall, Trade & Industry feels that this Budget has not provided any relief for the economic growth of the State, said Mr.K.Shiva Shanmugam, President, FKCCI.
