Staff Correspondent

  • `The service tax on immovable property linked with trade would hit the real estate market'
  • `One per cent hike in education cess is also a matter of serious concern'

    BHOPAL: Madhya Pradesh Bharatiya Janata Party president Narendra Singh Tomar criticised the Union Budget on Wednesday saying it had betrayed the salaried class and the common man for the third year in succession.

    Mr. Tomar said that on the one hand the Budget proposes to lower the cost of cement and on the other the interest on home loans has been hiked. This amounts to giving with one hand and taking away with the other. The service tax on immovable property linked with trade and commerce would hit the real estate market, he said, adding that it would also have an adverse impact on the construction industry.

    The one per cent hike in education cess and increase in dividend distribution tax was also a matter of serious concern, Mr. Tomar pointed out.

    The PHD Chamber of Commerce and Industry said the Budget was on expected lines. PHDCCI Resident Director Rajendra Kothari said the direct tax proposals were a disappointment and would further increase the tax burden on the corporates. "The increase in dividend distribution tax and no significant change in fringe benefit tax are areas of concern. The enhancement of Rs.10,000 in the basic exemption limit for personal taxation is too meagre and does not even take into account the rising inflation in the last two years," he added.

    The PHDCCI said industry was looking forward to removal of surcharge and increase in depreciation rates for internal generation of resources. Introduction of yet another education cess of one per cent would add to the complexities of taxation.