The industry in Tamil Nadu came up with mixed reactions to Finance Minister Arun Jaitley’s budget for 2015-16, welcoming the announcement that the much-awaited Goods and Services Tax would be in place from next year, but was not impressed with the hike in service tax to 14 per cent.
The government’s initiatives in the social sector as well as the proposal to reduce corporate tax were seen as positive measures, but industry bodies also voiced their disappointment in some areas.
According to Ravi Sam, chairman, Confederation of Indian Industry – Tamil Nadu, there was a timeframe for implementation of Goods and Services Tax and it was a welcome move for industries. Though there were no sector-specific announcements, the proposal to reduce corporate tax and initiatives to boost the social sector were also welcome measures.
C. Muthusami, president, Tamil Nadu Small and Tiny Industries’ Association, said the micro, small and medium scale enterprises would benefit from the announcements on setting up of Micro Units Development Refinance Agency Bank and the launch of the National Skill Mission.
At the CII budget viewing session in Chennai, its Southern Region Chairman Navas Meeran, said, “The reduction of corporate tax rate from 30 per cent to 25 per cent will make Indian companies competitive.”
Suchitra K Ella, Joint Managing Director of Bharat Biotech International, emphasised the need of more funds for innovation. “The Rs 150 crore announced is not enough for innovation.”
Industrialists opined that with the existing favourable macro economic factors, the 14 per cent increase in the service tax could have been avoided.
“Corporatisation of Ports is a good attempt to bring professionalism and increased efficiency to compete with the privately owned ports,” says Mr T Shivaraman, immediate past president Madras Chamber. On the flip side, the Madras Chamber members said though there was a lot of talk on ‘Make in India’, there was no clear-cut measure to incentivise the manufacturing sector.
According to the Southern India Chamber of Commerce and Industry, the budget was more of an incremental exercise. Chambers president Jawahar Vadivelu, said, “While the Finance Minister announced tax-free infra bonds for road, rail and irrigation projects, there could have been a further expansion of the scope of government investment in the infrastructure sector.”
