CM brushes aside chamber's demands at annual meeting

Work with vigour instead of asking for sops, Modi tells industrialists

Despite the presence of the chief minister Narendra Modi at the annual general meeting, the Gujarat Chamber of Commerce and Industry (GCCI) did not get any assurance on the demands its office-bearers have listed down at the meeting.

This was for the first time in the history of the chamber that a chief minister was called for an annual general meeting.

Office-bearers of the chamber listed out a number of demands with the state government at the annual general meeting earlier this week.

After listening to all the demands, Modi just said the trading community was very strong and instead of asking for concessions from the government, it must work with a renewed vigour, which will eventually help the state to grow.

Most important among the demands was abolition of octroi within the limits of municipal corporations. After several representations, the state government had on May 1, 2001, decided to abolish octroi from all areas of the state, except municipal corporations.

Octroi is not levied in municipalities, gram panchayats and nagarpalikas.

Both outgoing GCCI president Shreyas Pandya as well as the new president Chinubhai Shah had made mention of high electricity tariffs, octroi within the seven municipal corporation areas and other problems.

Pandya said in his speech the state government earns a revenue of around Rs 900 crore through octroi every year. Pandya said the overall tax collection of the Gujarat government has also increased substantially over the past decade.

He said from a revenue of Rs 5,322 crore from various taxes in 1995-96, the revenue from tax collection is expected to be 11,914 crore in fiscal 2004-05, according to projections made by the state finance minister in his recent budget speech.

"At a time when the revenue from taxes has gone up by 119 per cent, it would be fair to exempt municipal corporations from octroi," said Pandya.

Chamber officials also raised the issue of high stamp duty in the state.

Addressing the chief minister, Pandya said according to recommendations made in the National Housing Policy, the stamp duty should be four per cent, but with a 40 per cent surcharge on the six per cent stamp duty, the aggregate stamp duty in the state turned out to be around 9.40 per cent.

Newly appointed Gujarat Chamber of Commerce and Industry president Chinubhai Shah said there was a need for the state government to be more responsive to the demands of the chamber as it is the umbrella organisation of trade and industry across the state.

"We look forward to a more meaningful association with the state government in resolving the several pending demands," said Shah.