'Pragmatic, growth-oriented'

CHAMBER MOOD

No increase in corporate tax, goods and services tax initiatives hailed.

The industry chambers today praised the Budget as pragmatic and growth-oriented.

"We could not have expected anything better. The GDP grew faster than we were anticipating.This gave the finance minister larger fiscal space, enlarging the scope of investment in social infrastructure," said Confederation of Indian Industry (CII) President YC Deveshwar. The Budget would lead to greater buoyancy in investment and consumption, he added.

"There is no additional burden of taxation on the corporate sector. The government's three-pronged approach of focusing on infrastructure, rural economy and manufacturing is welcome," said N Srinivasan, director-general, CII.

Bajaj Auto Chairman Rahul Bajaj said the changes effected in fringe benefit tax (FBT) did not amount to much. He expressed happiness with the finance minister's decision to not increase corporate tax, despite pressure from the Left parties and welcomed countervailing duty of 4 per cent on all imports.

"The Budget has sought to lay the foundation for the country to achieve 10 per cent growth in the next two to three years," said Saroj Kumar Poddar, president, Federation of Indian Chambers of Commerce and Industry (Ficci).

The drawing up of a road map for introduction of a Goods and Services Tax (GST) by 2010 has been welcomed by the chambers. This should serve to integrate the economy and make India a single common market, said Poddar.

The move to effect no changes in personal taxes and introduction of no new tax were also welcomed. Members of corporate India felt that dividend distribution tax, fringe benefit tax and minimum alternate tax could have been tackled in a more positive manner.

"The finance minister should have restrained to increase service tax from 10 to 12 per cent till the GST was brought in," said Associated Chambers of Commerce and Industry of India President Anil K Agarwal.

The chamber also felt that not much had been done for the pharmaceuticals and power sectors which were key to achieving a higher growth rate and providing health care facilities to the common man.