'move for flood cess can have adverse impact on industry'

A commerce and industry body Thursday welcomed the Kerala budget that seeks to provide an impetus to infrastructure development, but said the move to impose flood cess could have adverse impact onindustries.

"The move to impose a one per cent flood cess on items under the 12 per cent, 18 per cent, 28 per cent GST slab could have adverse an impact on industries and also prove burdensome to the common man,"president of the Cochin Chamber of Commerce and Industry, V Venugopal, said in a release here.

Seeking to mobilise additional revenue, Finance Minister T M Thomas Issac in his budget speech said for supply of goods coming within the GST, the tax bracket of 12 per cent, 18 per cent and 28 per cent and on all services, 1 per cent flood cess will be imposed on the value of supply.

The chamber said it was happy to learn that the Economic Review has indicated that the States GDP grew at 7.18 per cent during the last year as against 6.22 per cent in the previous year.

"The Chamber welcomes the fact that the Budget seeks to provide an impetus to infrastructure development by various allocations for the construction of roads, railways and electricity", it said.

Hailing the proposal to give priority to coastal roads, the chamber said a 515 km high-speed rail track costing Rs 55,000 crore was an ambitious project.

"We welcome the decision to commence construction of the high speed Thiruvananthapuram-Kasaragod railway track this year", it said.

The chamber also welcomed the promotion of electric buses by the state road transport corporation and the tax exemptions to electric vehicles.

"On the social frontm the allocation to the Santhwanam project to assist NRIs who lost jobs, the focus on drinking water projects, the Urban Employment Guarantee Scheme, the Integrated Health insurance scheme envisaged, the Rs 260 Crores for Employment Generation Schemes are welcome.

The modernisation of Government schools envisaged is long overdue", it said.

The chamber also hailed the decision to set three rice parks and to establish the Kochi-Coimbatore industrial corridor.

Furthermore, the Kinfra MegaFood parks, financial assistance to the handloom-khadi sector, the cashew sector and the special assistance for traders.