Punjab exporters unhappy with the Budget

Punjab exporters are dissatisfied with the Budget. They (especially the SMEs) are of the view that their demands have not been addressed.

Speaking to Business Standard, Punjab Chamber of Small Exporters Senior Vice-President A K Kohli said: "Though the finance minister has increased the personal income tax exemption limit and reduced the income tax slab rates, the tax payment procedure simplifications are still awaited. It is also good that central sales tax has been reduced from 3 per cent to 2 per cent and the service tax exemption limit has been increased from Rs 8 lakh to 10 lakh, but there is hardly any step to reduce the rate of service tax from 12.36 per cent to 7 per cent and national VAT from 4 per cent to 3 per cent."

He said in Budget 2008, nothing had been done for the exporters, especially those who are the worst-hit due to the huge rupee appreciation and the US dollar depreciation during 2007.

On account of this, the total loss to exporters is assessed at more than 17 per cent.

"However, 100 per cent export-oriented units are getting full income tax exemption on export profit under Sections 10A & 10B," he added.