Industry bodies hail budget moves

The business fraternity in the state has welcomed the budget presented by Chief Minister Narendra Modi today.

He gave a Rs 341-crore tax relief in stamp duty, entertainment tax and electricity duty.

However, doubts remain on its implementation front.

"We have welcomed value-added tax (VAT), which is to be implemented from April 1. Relaxation in electricity duty is also a welcome move," said Naresh Patel, president of Rajkot Engineering Association.

It should be implemented properly to benefit common people, added Patel.

However, it is too early to rate the budget now, he said.

Dhansukh Vora, secretary, Greater Rajkot Chamber of Commerce and Industries, told Business Standard, "A few noteworthy decisions have been taken in the budget such as land acquired on lease by GIDC can now be bought by the factory owner setting up his facility there."

Apart from this, Rs 341-crore tax relief has been a good step. But deficit management is an area of concern, warned Vora.

Welcoming VAT, he sought clarifications about other taxes such as octroi duty, entry tax, professional tax etc to be abolished with immediate affect.

Vora further said that most of the schemes announced are long term in nature and can not be completed soon.

"Considering media reports of a financial burden of Rs 81,000 crore on the state, as cited in the Comptroller & Auditor General's report, it's almost clear that these schemes are not viable at this stage," explained Dhansukh Vora.

Haresh Vora, president, Rajkot Chamber of Commerce & Industries, said the budget is a trailblazer. He also said that this year's budget shows positive attitude of the state government towards trade and commerce. "The announcement of tax relief clearly indicates the state's readiness to encourage the business fraternity and bring economic resurgence in the state," said Haresh Vora.

Similarly, Amit Goradia, chairman of Federation of Indina Chambers of Commerce and Industries (FICCI), Gujarat State Council, felt the budget's overall impact on the state's economy to be positive.

The allocation of Rs 12,503.50 crore for annual development plan, will give a boost to the overall economic development, informed Goradia.

He added that 35 per cent allocation to the social sector and around 21 per cent allocation for water management and irrigation will benefit the agriculture sector and agro-based industries.

Goradia said outlay could have been increased for industry as it substantially contributes to the state's domestic product and has a multiplier effect on the economy.

It provides and generates large employment opportunities. He also welcomed Rs 100 crore allocated for the tourism sector.

The implementation of VAT will be a win-win situation for the industrial sector as well as the government because empirical data have shown states implementing VAT have substantially benefited in terms of revenue, he added.