Some measures in Budget are welcome: B'lore Chamber

The Bangalore Chamber of Industry and Commerce (BCIC) today welcomed some of the proposed measures in the Union Budget, including significant increase in personal income tax slabs, increased allocation for road sector, alignment of current excise rates towards roll out for GST and liberalisation of ECB norms for food processing sector.

However, it expressed disappointment over increase in Minimum Alternate Tax (MAT) rate from 15 to 18 per cent and described it as a "retrograde step".

The BCIC felt that instead of removing the surcharge altogether, the corporate sector is now saddled with increased tax outlay, President K R Girish said.

"No mention has been made on extension of tax holidays for STPI/EOU which is disappointing for IT/ITeS sector considering increase in the rate of MAT", he said.

On the whole, BCIC felt the Finance Minister could have taken certain bold initiatives to augment revenues and give a fillip to growth by incentivising corporate India to invest in expanding capacity.