CII recommends inclusive growth in K'taka budget

In its drive to promote inclusive growth of the state, CII in its Pre-Budget Memorandum to the Karnataka government recommended building corporate linkages through the Public Private Partnership (PPP) model in building a social infrastructure.

Moreover, it has emphasised encouraging agro-processing industries by encouraging FDI in agro-processing industries, providing related infrastructure and disbursing market information on the web portals.

The industry has also called for other measures to encourage agro-processing industry including the continuation of VAT exemption for wheat products for another five years, reduction in the rate of VAT on biscuits to 4 per cent from the present rate of 12.5 per cent and reduction in the rate of tax for agri machinery, parts and accessories to 4 per cent.

"The retention rate of stock transfer be aligned with CST rate and amendment to the KVAT Act 2003 to grant exemption to the lease rentals received during the VAT regime in respect of lease agreements entered prior to April 1, 2005," CII said in a statement.

CII has also recommended issuing special notification granting exemptions from all state local taxes and levies to the developers of SEZ, in consonance with the KSEZ policy.

Though these exemptions were included in the KSEZ policy, no notifications were issued on the same. As such this could erode the competitiveness of the state, the statement added.

CII also strongly recommended fixing reasonable ceiling on stamp duty leviable on the equitable mortgage.

The current levy of stamp duty of 0.5 per cent on the loan amount without any ceiling has been responsible for pushing up of cost and causing substantial and recurring burden to the companies, it noted.