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| In J&K, industry lobby quite unhappy, common man says it’s ok | | | SANDEEP BHATT
Jammu, July 6: Pranab Mukherjee’s budget addressed the issues of common man as the focus on flagship schemes clearly reflected and hurt the riches as the sensex responded but what Jammu and Kashmir had expected was nowhere in the sight.
Jammu and Kashmir specific expectations ranged from restoration of excise refund to extension of a North Eastern states patterned industrial package but these areas were not touched upon. Hear it from the industry lobby representatives and they have only disappointments to share. But that does not mean that budget is entirely disappointing for all.
“No relief has been given to state of Jammu and Kashmir regarding our demand for the restoration of excise refund which was taken back by the union government after five and half years whereas the package of incentives was meant up to 2012”said Ram Sahai, President of Jammu Commerce and Industries. He said, alternatively it was demanded that package of incentives given to Northern Eastern States in 2007 should also be given to our state, but the Finance Minister did not bother to consider this also.
Inspite of all these efforts nothing happened and this has disappointed the industrial community of the state. To further add to our problems, the Minimum Alternate Tax (MAT) charged to corporate sector earlier at 10% has now been enhanced to 15%.
The Finance Minister seems to have prepared this budget with a view to only fulfill the promises made by his party during the election, for that liberal allocations have been granted or increased for flagship programs. More emphasis has been given to the agriculture sector, rural sector with a promise to create 1.20 crore jobs for unemployed youth and provision of technical education by providing interest subsidy for the moratorium period to the students, but it has not been mentioned that from where such number of employments will be generated because corporate sector, real estate and capital market has not been touched in the budget.
Mubeen Shah, president, Kashmir chamber of commerce & industries said, it is worth mentioning that in absence of revised industrial package for the industrial sector taking care of the problems of land power, central excise and other aspects necessary for the industrial growth the budget has disappointed the investors who may close down their shutters and shun the idea of further expansion of their units in the state. There is nothing special about Kashmir and is just a normal budget.
Commenting on the proposals of the Union budget 2009-10, Sanjay Puri , Chairman CII J & K state Council said that the Budget makes very strong directional comments in terms of good economic principals, transparency, citizen friendly.
“On tax reforms, reiteration of implementation of GST by April 2010 is a very welcome and key initiative”, he added. In general the budget has clearly outlined the intent towards convergence of rates and simplification of procedures. “We are happy with the removal of FBT, CTT and Income Tax surcharge as these are positive steps towards simplification in tax structure. We also look forward to the announcement of the Direct Tax code within the next 45 days, as announced by the budget” added Puri.
Increase in MAT was however unexpected, he said, and is likely to increase the tax burden on some sections of the industry. The key thing, however, is that the Finance Minister has by and large not increased Excise or Service tax; nor has he reduced Customs duty largely” said Puri.
The Budget moves towards a tax friendly regime, seeking to broaden the tax base and aiming for better compliance.
The Budget has also reiterated the Economic Survey’s recommendations on better targeting of subsidies and improving delivery of public services.
Education and focus on women, senior citizens and common man have given this Union Budget a soft touch which is greatly appreciated.
The CII J & K State Council has found focus in the Budget by way of special attention to two mega carpet clusters in Srinagar (J&K). The special attention to these areas and sectors exhibits the proactive recognition of priority areas, he added.
Rajesh Kumar Handoo, bank employee said, “more than 70 percent of people in India fall in the income group which is below 10 lakh adding that he finance minister should have focused on this segment and win their hearts. Large number of housewives also gave mixed reactions as they were struggling to filter out good things in the budget proposals.
Prof. Noor Ahmed Baba of the Kashmir University, said that there is nothing which is appealing and provides enough opportunity to people particularly for Kashmir. This Budget is as usual, not extra-ordinary. People cannot be fascinated with such kind of budget proposals. Common investors also are not happy with the budget proposals as markets tanked recording a fall of over 800 points in one single day.
Prof. Bhim Singh, Supremo panther party, said this is for the first time in the budget history that poorest of the poor has been subjected draconian taxation in the name of service tax. The poor clients and patients shall be charged service tax by the layers and the doctors as has been levied by the finance minister. The additional exemption of 10,000 to woman and 15,000 to the senior citizen on income tax is a mockery of the union budget. 1% reduction in the interest on the loans to the farmers is another fraud committed on 80% population of the country. They needed reasonable subsidy on the agricultural machinery and fertilizers.
The government has raised fuel prices which shall fetch them Rs. 50 crores a day from the wretched of the earth including the labourers and the farmers. Now these poor sections of the society have to pay service tax to their lawyers and doctors also. The government is charging 12.5% in the name of VAT on the drinking water served in plastic bottles.
There is no concession to the professional students, no concession to the working class and no concession to the farmers at all.
Prof. A.K. Sadhu, former head of deptt. A economics, Jammu university, said that it is a normal routine budget and is not a development focused.
This budget has not given much relief to people who were expecting much high income tax margins. He further said there is no type of strategy for agriculture in this budget and no mention of curbing price rise. Overall, this budget is below expectation.
Vinod Sachdeva a leading businessman of Jammu said that this is a people friendly budget and we are happy with the removal of income tax surcharge. The setting up of Unique Identification Authority of India (UIDA) for which a budgetary provision of Rs 120 crore has been made, announcement of the intent to move towards a nutrient hbased fertilizer subsidy and setting up of expert group to review the system of pricing of petroleum products are very significant initiatives in this direction.
The intension of this government is good but only time will tell whether to be implement in letter and spirit.
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