Trade bodies term it as launch pad for execution of various schemes
The State Budget for 2012-13 financial year, presented by Finance Minister O. Panneerselvam in the Legislative Assembly on Monday, has largely attracted praises from the Temple City.
All India Moovendar Munnetra Munnani Kazhagam said that the Budget would put the State on the path to development.
Its founder president N. Sethuraman said that the allocation of Rs. 24 crore for cancer treatment centres at Madurai and Coimbatore was laudable.
The Tamil Nadu Chamber of Commerce and Industry has welcomed the Budget terming it as a launching pad for execution of various schemes announced in ‘Vision Tamil Nadu 2023' document released by Chief Minister Jayalalithaa.
Noting that the Budget had no new tax proposals except on liquor, Chamber senior president S. Rethinavelu said that the one time special allocation of Rs. 250 crore to Madurai Corporation for developing infrastructure would go a long way in ensuring free flow of traffic in the city, the lack of which has severely inhibited industrial growth.
Madurai District Tiny and Small Scale Industries Association (MADITSSIA) has terming the budget as industry-oriented and said that the allotment of Rs.50 crore for developing District Industries Centre in all 32 districts would help micro, small and medium enterprises in the State.
Association president V. S. Manimaran said that the new scheme to help educated youth become first generation entrepreneur would also help unemployed graduates.
Value added tax
Tamil Nadu Foodgrains Merchants Association has thanked the State Government for completely exempting wheat from the present levy of 2 per cent from value added tax (VAT).
Since wheat was used in various forms such as ‘Maida,' ‘Suji' and wheat flour, the association had requested the Finance Minister to exempt all wheat products also.
Association secretary S. V. S. S. Velshankar also requested the State Government to reduce the value added tax on edible oil to 1 per cent.
In the Budget, the Finance Minister had announced that the exemption granted from VAT on vegetable oil for the turnover up to Rs 5 crore per year would be withdrawn to prevent tax evasion and VAT would be levied at the rate of 5 per cent on sale of vegetable oil.
Mr. Velshankar said that in Kerala, from where Tamil Nadu procured heavily and in turn sold them to northern States, only 2 per cent was levied.
If the levy were to be reduced, the State Government could see increase in revenue.
He also expressed concern that despite repeated representations made on the issue of Market Cess Committee, no action had been taken.
The Agro Food Chamber of Commerce and Industry has thanked the Government for its schemes to motivate agricultural sector through various schemes and food processing industries.
Association secretary J. Rajamohan said that the allocation of Rs. 3,805 crore for agriculture was among the highest in the sector, which had been given a target of achieving 120 lakh tonnes in food grain production during the current fiscal.
Doubling the allocation of animal husbandry to Rs. 814 crore and enhancing the crop loan target to Rs. 4,000 crore were also praise-worthy, the trade body noted.
Keywords: Tamil Nadu Budget 2012