Tax-free State budget evokes mixed response

March 26, 2015 12:00 am | Updated 05:52 am IST - TIRUCHI:

The State Budget 2015-16 has evoked a mixed response from the trade and industry representatives here.

Though it is a welcome Budget given its overall welfare objective, it is disappointing that there is no announcement on new projects or schemes for the benefit of the industry. The State government’s move to accord priority for skill development training for youths is a welcome measure and so is the allocation for welfare schemes, said T.Raju Rebero, president, Tiruchi District Tiny and Small Scale Industries Association. The BHEL Manufacturers Association welcomed the withdrawal of the three per cent Input Tax Credit reversal on interstate sale of goods. “This has been our long-pending demand and the move would make us competitive,” said Rajappa Rajkumar, president of the association. Overall the budget seems to be good; he said and welcomed the move to reduce VAT on air compressors and pumpsets.

Terming the budget a mixed bag, the Tamil Nadu Vanigar Sangankalin Peramaippu welcomed the move to promote solar power generation as a people’s movement. Ve.Govindarajalu, State treasurer of the organisation, however, expressed concern over the increase in the commercial tax target saying that it would pose a head ache to traders as officials would pressurise them to achieve the targets. The reduction in VAT for LED bulbs, cardamom, air compressors and pumpsets is a welcome move, he said.

M.Sekaran president, Federation of Consumer and Service Organisations, said there has been no tax hike as expected. He suggested that the government could have made a substantially higher allocation for improving road safety. The secretary of the Golden Rock Branch of the Consumer Protection Council, Tamil Nadu, H.Ghouse Baig, welcomed the reduction in VAT on mobile phones and LED bulbs. The farming community expressed disappointment with the Budget stating that it has failed to fulfil their expectations. “Our major expectation was waiver of crop loans as the State has faced drought-like conditions over the past three years. Although the government has allocated Rs.5,500 crore for crop loans, the agriculture sector is facing a crisis situation,” said Siva.Suriyan, district secretary, Tamil Nadu Vivasayigal Sangam, affiliated to the Communist Party of India. Mr.Suriyan also expressed disappointment over the allocation of just Rs.253 crore for intrastate river linking. Tamil Nadu is heavily dependent on other States for water. Steps should be taken to expedite the linking of rivers to harness monsoon, he said.

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