Cochin Chamber welcome Budget proposals Tourism and IT find special mention

Trade, industry welcome Budget proposals



Staff Reporter



Tourism and IT find special mention in the budget






KOCHI: Finance Minister Thomas Isaac has helped dispel certain ‘myths’ about Kerala economy and its performance through the Budget 2008, said Indian Chamber of Commerce and Industry here in its reaction to the Budget proposals by the Finance Minister.

Chamber President Jose Dominic said that Kerala had always been known for its achievements in the social sector and welcomed the initiatives and emphasis by the government on the social sector.

Following the Union Budget 2008, the State Budget too has emphasised agriculture.

The State has also focussed on traditional sectors such as coir, cashew, fisheries and handloom.

The government’s intention to promote infrastructure development in the State and the sectors focussed on are welcome, said Mr. Dominic in his statement.

However, he said that much more needed to be done if “we are to keep pace with the times.”

Tourism and Information Technology find special mention in the Budget and they hold tremendous hopes for the State, he added.

While there is a need for taking care of the environment in Kerala, the Budget should have given greater importance to “sustainable and green growth pattern of Kerala.”

The Chamber welcomed the development package for North Kerala and expressed surprise at the “silence” on the development of Kochi, barring a passing reference to the metro rail project.

Reforms


The Cochin Chamber also welcomed the government’s move for administrative reforms, which were long overdue. Cochin Oil Merchants’ Association (COMA) has welcomed the Budget proposal for tax exemption to coconut-based units.

M.J. Kuriakose, president of COMA said here in a statement here on Thursday that the proposal would help coconut farmers realise higher prize for their produce.

The Association also said that the relief on tax arrear collection would go a long way in helping industrial units that are sick.

Land bank


Kerala State Small Industries Association welcomed the Budget proposal for forming a land bank to make available sufficient land for industrial purposes.

A.P.M. Abdul Rahim, president of the association also welcomed the Budget proposal for one-time settlement of tax arrears.

The Association welcomed the move to exempt paper bags from the purview of taxes but said that the proposal to raise tax on plastic carry bags to 12.5 per cent would affect the business and that this would prompt merchants to bring in plastic bags from other States by paying two per cent CST.

The proposal to simplify the provision for compounding for works contracts, to extend benefits to dealers who voluntarily come forward to take registration, reduction of tax on aviation fuel, and so on, are welcome steps in the State Budget 2008, said the Indian Chamber of Commerce in a statement here.

The Chamber also welcomed the proposal for continuing Grand Kerala Shopping Festival to promote trade and tourism and to protect and expand commercial centres, including Fort Kochi.

Amnesty scheme


The Finance Minister had also responded positively to a suggestion to introduce an amnesty scheme for disposing of arrears of all taxes to be collected by the Commercial Tax Department under the Kerala Government Sales Tax Act, said the statement. It also expressed hope that fiscal deficit would be fully under control by 2010-2011.

Ernakulam Merchants’ Union has said that the Budget 2008 had not taken into consideration any of the suggestions put forward by traders. A statement from the Union described the Budget as disappointing.

The Budget had no proposal for resisting the big players in the retail sector and that the Finance Minister had disappointed the small retailers.The Merchants’ Union welcomed the proposal for one-time settlement of tax arrears as it also called for mechanisms to settle the disputes on the tax arrears.

http://www.hindu.com/2008/03/08/stories/2008030856302100.htm