‘It is pragmatic, inclusive and growth oriented’
Apex chambers of commerce and industry in Karnataka have welcomed the Union Budget 2009-10 presented by finance minister Pranab Mukherjee in Parliament on Monday, terming it as pragmatic, inclusive and growth oriented. In totality, it is a healthy and wholesome budget, they said.
The Bangalore Chamber of Commerce and Industry (BCIC) has welcomed the proposal to introduce goods and service tax (GST) with effect from April 1, 2010. Continuation of income tax exemption for STPI and other units under section 10A/10B for one more year even though the industry was keen to get a three year extension is a welcome move, said K R Girish, president, BCIC.
He said abolition of fringe benefit tax is a very positive move which will have an impact on both employers and employees. Change in the scheme of refund of service tax credit for exporter and abolition of commodities transaction tax are welcome moves.
Girish also complimented the Union Government for setting up a Central Processing Unit in Bangalore for processing electronically filed income tax returns.
The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has said though the finance minister has presented an inclusive growth oriented budget, he should have abolished minimum alternate tax (MAT).
“We are happy that surcharge on personal income tax, fringe benefit tax and commodity transaction tax have been done away with. A major relief is that the scope of presumption taxation has been extended to all small businesses with a turn over up to Rs 40 lakh. All such taxpayers will have the option to declare their income from business at the rate of 8 per cent of their turnover and simultaneously enjoy exemption from the compliance burden of maintaining books of accounts,” said J Crasta, president, FKCCI.
M C Dinesh, president, Karnataka Small Scale Industries Association (Kassia) said, “As far as SMEs are concerned, not increasing the exemption limit for the central excise is a disappointment. In spite of repeated plea, the SME sector is not favoured with lowered rate of interest on par with agriculture. The budget has nothing special to catalyse SME sector despite the fact that it serves as engine of growth for the economy.”
While welcoming abolition of fringe benefit tax, exemption for small businesses from advance tax and introduction of GST, the Mysore Industries Association has expressed dissatisfaction over no mention on increase in exemption limit on central excise duty for small industries.