Chamber happy government listens to its suggestions

The Mysore Chamber of Commerce & Industry has expressed its happiness at the Karnataka government accepting some of its pre-budget proposals.

"We are happy that our proposals on VAT and reducing tax rate slabs have found acceptance by deputy chief minister and finance minister Siddaramaiah in his recent budget proposals," chamber president K N Suresh Kumar said.

In its pre-budget proposals submitted to the finance minister, the chamber had pleaded for tax rates at par with the neighbouring states for attracting more business within Karnataka, discontinuation of security deposit as NSC up to Rs 10,000 and extension of self-printed Form 39 scheme for all businesses.

In addition to this, they had also asked for including those with less than Rs 50 lakh turnover and use of self-printed declaration Form 37 for all manufacturing industries, including those below Rs 1 crore, reduction of the 2 per cent interest levied for delayed payment of taxes to one per cent in view of the falling interest rates and abolition of turnover tax and entry tax.

Besides pleading for the effective introduction of VAT system without any additional cess or surcharge, the Mysore Chamber had urged that the tax rate slabs be reduced to three slabs -- 4 per cent, 6 per cent and 8 per cent -- as it leads to prompt payment and higher recovery, assessment be made simpler and transparent to avoid harassment and the credit period for tax realisation be extended up to 90 to 120 days from the present 20 days, at least for SSIs and small trades.

It also sought that electricity tax of 5 per cent be removed for all categories in view of frequent tariff revisions, budgetary provision for maintenance of roads and other critical infrastructure in industrial areas as industries pay the government and local bodies, budgetary allocation for subsidies pending to industries over the years, simplification of labour laws and abolition of Form 40 as it poses hardship to trade and industry.

Backing the reaction of the FKCCI on the state budget, the chamber president said the finance minister has made a sincere attempt to revert back to tax reforms by reducing the tax slabs.

Even the basic slabs have been brought down. However, the lack of specific schemes for infrastructure development, particularly roads, a key aspect for the growth and dispersal of industry was lacking.

Also, the proposal to increase tax on computers and related items will be counter-productive.