The Assam budget, presented by Assam chief minister Tarun Gogoi yesterday in assembly, has drawn mixed reaction from the industry. While the industry has "welcomed" the budget initiatives on infrastructure development, education, health and social welfare, what it found missing were "bold measures for economic acceleration to boost the economy."
"While we welcome the budget initiatives on infrastructure development, education, health and social welfare schemes and innovative measures for a balanced and sustainable growth, much needed steps for micro and small industries; what is lacking is absence of specific and bold measures for economic acceleration and giving a quick boost to the economy of the state which were very much warranted in the budget particularly in view of slowing down of the economy," said RS Joshi, chairman of Federation of Industry and Commerce of North Eastern Region (FINER), the premier trade and industry of North East.
He added: "We expect the chief minister to come out with some stimulus measures which could place the state as a preferred investment destination and put the state economy on a double digit growth trajectory mode which would naturally result in much more employment and revenue growth thus making available much needed resources for the exchequer. As a whole, budget is good one reflecting financial stability in the state."
Joshi said Gogoi, who is also the finance minister of Assam, had acceded to a good number of suggestions put forward by the industry on rationalisation and reduction of tax rates, widening of tax net, etc. However, the industry is disappointed that entry tax on industrial inputs and machineries has not been done away with.
"We are disappointed that entry tax on industrial inputs and plants and machinery has neither been done away with nor entry tax so paid by industry has been made vatable; that is making entry tax eligible for input tax credit. Steep hike in entry tax on clinker and housing construction material does not augur well and needs reconsideration," said Joshi.
The industry is, however, happy with the budget announcement to reduce stamp duty and registration fees on property transfer. The budget reduced the rate of stamp duty and registration fees from a total of 13.5 per cent to 3 per cent in case of women registrants and from 14.5 per cent to 5 per cent in case of men.
"Reduction of stamp duty and registration fees on property transfer is most welcome and timely step giving a big fillip to real estate sector and a good move to provide affordable housing to the people of the state," said Joshi.
