Bankers welcome govt's tax proposal

Leading bankers today welcomed the Budget for 2009-10 and have said that with a lot of tax rates left unchanged, there will be more money in the hands of the common man.

Finance Minister Pranab Mukherjee presented the Budget today and left many tax rates untouched even as he did away with the Fringe Benefit Tax, among others.

"I think I am overall very happy with the Budget ...," HDFC Chairman Deepak Parekh told private news channel CNBC TV18.

Stating that he does not see any reason for being negative on the Budget, Parekh noted that the Finance Minister mentioned the role of the private sector and private finance in the speech.

"You must understand that he mentioned the role of the private sector and private finance ... Disinvestment will happen. The government needs more money ... I don't see any reason for (being) negative at all," he noted.

ICICI Bank Chairman K V Kamath said the Finance Minister has held taxe rates and made it into a neutral Budget in terms of taxes.

"The important part (in the Budget) is holding tax ... (This would be) pushing money into (people's) hands and it is certainly good for the economy," he said.