The corporate houses and traders in Uttar Pradesh have expressed disappointment with the Union Budget 2013, saying its proposals would neither boost consumer demand nor control inflation.
They criticised the raising of the personal income tax exemption limit from Rs 1.8 lakh to Rs 2 lakh, claiming it would only offset inflation effect with no real benefit.
Micro, Small and Medium Enterprises (MSME) chamber Indian Industries Association (IIA) said the Budget would not control inflation. Instead, it would be difficult for the government to fulfil its announcements regarding the heavy outlay esp-ecially for the agriculture sector, IIA general secretary Manish Goel said, citing the Budget presented by finance minister Pranab Mukherjee in Parliament on March 16.
He lamented there was a provision of only Rs 5,000 crore for SMEs, and that too for venture fund which could be accessed by few. The IIA felt two announcements regarding SME exchanges and 20 per cent government purchases from the MSME sector had been made much before the Budget and there was “nothing new” in it.
Assocham said the finance minister had belied the hopes of all categories of taxpayers. “Increasing service tax and excise duty by 2 per cent and extending the domain for service tax, excluding only 17 services in negative list, will increase cost of production and services,” said S B Agrawal, the chamber’s UP secretary general
Akhil Bharatiya Udyog Vyapar Mandal said the Budget would stoke inflation and pinch common man. Its president Sandeep Bansal slammed the annual financial statement for its references to foreign direct investment in retail and dual goods and services tax, which he reiterated the traders would “never allow”. He also flayed the proposals to increase service tax and excise duty.
The Akhil Bharatiya Udyog Vyapar Pratinidhi Mandal said the Budget was “anti-people”. Its president Banwari Lal Kanchal, to buttress the point, referred to hike in tax rates, “paltry” increase in personal tax exemption limit and “neglect” of small businesses.
All India Power Engineers Federation said the Budget was gloomy for the power sector. The rising dependence on private companies would prove costly for India, according to its secretary general Shailendra Dubey.
The Confederation of Indian Industry lauded the Budget saying it was realistic.