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| MAT will have adverse impact: Hysea |
| BS Reporter / Chennai/ Hyderabad Jul 08, 2009, 00:52 IST |
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The Hyderabad Software Exporters Association (Hysea), the apex body with more than 300 members representing the software in Andhra Pradesh, on Monday said steps like the increase in minimum alternative tax (MAT) from 10 to 15 per cent are going to have an adverse impact on the industry in the short run and this is something the Centre could have avoided.
In terms of the impact on the IT industry, the association said, steps like the scrapping of the fringe benefit tax (FBT), extension of the 10A benefits till 2011, increase in the MAT credit period to 10 years and increased allocation to education were welcome steps.
Falls short
The industry expected more incentives for manufacturing, infrastructure and export market. Though the proposed national gas grid would stir the economy, there is a need for the Andhra Pradesh government to safeguard the interests of gas-based units in the state. The fact that the expenditure for this year would touch Rs 10.23 lakh crore has underlying concerns - widening fiscal and revenue deficits, which are not good for growing economies. Even the increase in personal income tax by 10,000 for all and by 15,000 to senior citizens will not do any good. The slab should have been raised by at least Rs 50,000. This could have given a push to the manufacturing sectors as more people would be inclined to spend.
Y Harish Chandra Prasad, chairman of CII Andhra Pradesh and chairman,
Malaxmi Infra Venture India Private Limited
Taxing itself
A large fiscal deficit implies that the country is devaluing and taxing itself indirectly.
BVR Mohan Reddy, CMD,
Infotech Enterprises Limited
Hardware left out
There is no incentive for the hardware sector in particular. However, removal of the fringe benefit tax will come in handy for companies to retain manpower by extending employee sops.
Shakti Sagar, managing director,
ADP Private Limited
R&D in farm not addressed
The Budget did not talk about delivery mechanisms of various benefits extended by the government. There was no long-term focus on research and development in agriculture. Though it talks about a possibility of achieving a four per cent growth in agriculture, it fails to mention anything about irrigation projects. Also, cold storage and food processing units, which would attract investment-based subsidy, should be backed by a holistic approach.
V Anil Kumar Epur, director,
VST DSLC Private Limited
MAT to impact SMEs
Increasing the minimum alternate tax (MAT) from 10 per cent to 15 per cent would affect the SME units. The intent of implementing GST from next year is a welcome sign. However, the request for allowing companies to raise FDI from NRIs and the suggestion to create an SME Exchange finds no mention.
Ramesh Datla, managing director,
Elico Limited
Nothing to cheer tourism
The Budget did not have anything to cheer the travel and tourism sector, which has been the worst hit due to the global slowdown. Hospitality is now being treated on a par with real estate but it should be paired with infrastructure as it is the largest provider of employment and also the largest forex earner.
DV Manohar, chairman,
Shri Shakti Group
There is no relief or an incentive for conducting in-house R&D and clinical trials. The industry is disappointed to not see any excise cut on biotherapeutic drugs. A tax holiday should have been announced for the pharma and biotech companies to take advantage of the IPR regime and of the new products.
Suchitra Ella, joint managing director,
Bharat Biotech International Limited
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