Kolhapur industry resents service tax

Kolhapur-based industries feel the Budget has few goodies for them. While consumers would suffer due to the additional service tax burden, the  reduction in import duty would result in a flood of foreign imports and disturb indigenous manufacturers.

Pradeep Kapadia, chief of Kolhapur Chamber of Commerce, says that the  Budget proposals sought to compete with China in the global scenario but  might not succeed due to the systemic difference between the two  countries. The service tax burden of an additional two percent would put  local industries at a disadvantage.

Narendra Mate, a local industrial consultant, however, sees some positive  aspects in the Budget which might encourage the industrial sector in this region.

Encouragement to textiles might boost the powerloom sector at  Ichalkaranji while the sops for the health sector may lead to setting up  of more medical facilities and hospitals at Miraj. The provision for agro and food processing industries would also encourage development in these sectors in this region, he said.