PUDUCHERRY: The Association of Small Industries in the Union territory has said that the Budget presented by Union Finance Minister Pranab Mukherjee was not in the line of expectations of several sectors of economy and the public, with many of their expectations belied.In a statement, Secretary of the Association, K Parthasarathy said though it was expected that the budget would give relief in personal income tax in line with the Parliamentary Panel’s recommendations of fixing a basic exemption limit at ` Three lakh, the finance minister had extended a paltry `20,000 hike to the existing limit, “which is as good as not being given”. Many of the government grant and loan schemes have allowed a poverty thereshold limit of ` Four lakh per annum, but the common man is considered taxable at half that limit, he said. The Minimum Alternative tax (MAT), applicable only to companies hitherto, is being extended to persons other than companies as well, he added.Parthasarathy said the statutory excise tariff had been proposed to be raised from 10 to 12 per cent, which is bound to hike the cost of commodities.On the service tax, he said that the basic tariff has been increased from 10 to 12 percent. Further a negative list of 17 services were proposed and all others are brought under the service tax net which is bound to spiral the price line, much to the chagrin of the common man.K Parthasarathy said that the silver lining was exemption granted to interest income in savings bank accounts for an aggregate of `10,000 per annum. The exemption from payment of advance tax and offering a higher deduction in health insurance, medical expenses and certain interest receipts for senior citizens is also a positive affect.K Parthasarathy added that the national manufacturing policy initiatives, and the Delhi-Mumbai industrial corridor project to be pursued vigorously and setting up of `5,000 crore India opportunities venture fund with SIDBI for SME sector will be of great benefit..
Comments
0 comment