Expectations ran high among trade and industry on the eve of Union Budget with the Federation of Karnataka Chambers of Commerce (FKCCI) and Industry, which while agreeing that there is no magic remedy for economic recovery, released a wish list of measures to put the economy back on track.
The emphasis of the statement, from FKCCI president S. Sampathraman on Wednesday, was on an approach that provides clarity on the implementation of Goods and Service Tax (GST) and Direct Taxes Code (DTC), simplifying the tax regime with an eye on greater compliance, along with an expeditious dispute resolution. He said con matters related to international taxation and uncertain tax positions, retrospective amendments and aggressive audit positions would boost investor sentiment and business confidence. While calling for roll out of GST, with the concurrence of all States, since nationwide uniform rate would prevent tax arbitrage, he said current rates of direct and indirect taxes need downward revision for higher collections.
The FKCCI, Mr. Sampathraman said, had reservations about various provisions of the Land Bill as well as FDI in multi-brand retail. Noting that the micro, small and medium enterprises (MSME) could never purchase the land if the proposed land acquisition legislation comes into force, foreign direct investment in retail trade would “hurt seriously the millions of small family retailers, hawkers and vendors.” Instead, the government should encourage formation of cooperatives/clusters by the farmers as well as the unorganised retailers, and extend bank credit facilities and other incentives to them so that they can set up back-end infrastructure and improve the chain.
