Special Correspondent

MYSORE: The Mysore Chamber of Commerce and Industry (MCCI) has expressed its "cautious welcome" to the Union Budget 2007-08.

In a press release issued here on Wednesday, the MCCI said, "In the context of inflationary trends and political compulsions, we feel the Finance Minister has left aside his exuberance and confidence to experiment and try out new initiatives for faster growth as projected in his earlier budgets."

It said the great expectations of the middle-class and the salaried section had mellowed by the marginal increase in income tax exemption limit, though there was a silver lining by way of enhanced exemption limits to women and senior citizens.

The selective customs and excise duty reduction on items affecting inflation was welcome and timely. Small-scale industries and service sectors would be benefited by the increase in excise duty exemption limit from Rs. 1 crore to Rs. 1.5 crore and service tax exemption up to Rs. 8 lakh.

However, the chamber expressed its disappointment that the Finance Minister had left the issue of corporate taxation untouched and there was also no word on the issue of capital convertibility.