The State Budget 2015-16 has evoked mixed responses from stakeholders, who have variously described it as “balanced”, “please-all” or “disappointing”.
Mysore Industries’ Association (MIA) president P.Vishwanath and general secretary Suresh Kumar Jain described it as “far-sighted” and welcomed the focus on development of industries in backward areas.
The formation of a vision group for the overall development of industries in the State and formulation of a new Labour Policy were welcomed by the MIA, which also commended the enhancement of professional tax limit from Rs.10,000 to Rs.50,.000.
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Exemption of tax for footwear up to Rs. 500, reduction in tax for electrical and electronic cables by 5.5 per cent, enhancement of loan limit from Rs. 2 crore to Rs. 5 crore for SC/ST entrepreneurs, enhancement of VAT registration limits from Rs. 7.5 lakh to Rs. 10 lakh for small business and industrialists, 90 per cent subsidy for cold storage fctivity, development of three Industrial Parks on 10,000 acre of land in the next five years were other budgetary proposals welcomed by the MIA.
However, it expressed dismay over additional tax of 1 per cent on petrol and diesel, and the non-allocation of State contribution of Rs. 3 crore for Mysore Export Centre, even though the Union government allocated its share of Rs. 3 crores.
Regional imbalance
Sudhakar Shetty of the FKCCI said the Budget tried to redress regional imbalances and hence was a please-all effort. While welcoming the emphasis on infrastructure development and a special push for tourism development,
Mr. Shetty said there was nothing much for industry. Similar views were aired by M. Rajendra, State president, Karnataka Pradesh Hotel and Restaurants’ Association, who was disappointed that their demands for according industry status to hotels was ignored. “Though the demand to consider hotel as an industry, reduce sales tax, vehicle entry tax, etc. has been ignored, the emphasis on tourism sector and upgrading of Brindavan Gardens which are welcome initiatives,” he added.
K.S. Nagapathi, director, Mahajana Tourism Development Institute, welcomed the cable car project but said the Rs. 10 crore set aside for the development of Mysuru as a tourist place was a “pittance”, as was the Rs. 50 crore announced to implement the recommendations of the tourism vision group.