Industries in the State have welcomed the budget announcements, especially the proposal to implement Goods and Services Tax from next year.
According to Ravi Sam, chairman, Confederation of Indian Industry – Tamil Nadu, there is a timeframe for implementation of Goods and Services Tax and it is a welcome move for industries. Though there are no sector-specific announcements, the proposal to reduce corporate tax and initiatives to boost the social sector are also welcome measures.
C. Muthusami, president, Tamil Nadu Small and Tiny Industries’ Association, said the micro, small and medium scale enterprises would benefit from the announcements on setting up of Micro Units Development Refinance Agency Bank and the launch of the National Skill Mission.
At the CII budget viewing session in Chennai, its Southern Region Chairman Navas Meeran, said, “The reduction of corporate tax rate from 30 per cent to 25 per cent will make Indian companies competitive.”
Suchitra K Ella, Joint Managing Director of Bharat Biotech International, emphasised the need of more funds for innovation. “The Rs 150 crore announced is not enough for innovation.”
Industrialists present at the session opined that with the existing favourable macro economic factors, the 14 per cent increase in the service tax could have been avoided.
Chozha Naachiar Rajasekar, president, Tamil Chamber of Commerce, said not having any announcement or fund allocation for Sethusamudram project or linking of river projects was disappointing.
“Corporatisation of Ports is a good attempt to bring professionalism and increased efficiency to compete with the privately owned ports,” says Mr T Shivaraman, immediate past president Madras Chamber. On the flip side, the Madras Chamber members said that though there was a lot of talk on ‘Make in India’, there was no clear-cut measure to incentivise the manufacturing sector.
According to the Southern India Chamber of Commerce and Industry, the budget was more of an incremental exercise. Chambers president Jawahar Vadivelu, said, “While the Finance Minister announced tax-free infra bonds for road, rail and irrigation projects, there could have been a further expansion of the scope of government investment in the infrastructure sector.”
