Maharashtra budget proposals evoke mixed reactions

BUDGET REACTION

The state Budget has evoked mixed reactions from industry and trade associations. While majority of trade body members criticised the increase in various taxes, some others lauded the thrust given in the Budget to agriculture, power and infrastructure.

Digvijay Kapadia, president, All India Federation of Cloth Retailers' Associations, said, "Trade and industry bodies were expecting the finance minster would abolish octroi but he has not given any firm assurance about it. He has just announced to set up a committee to review octroi. Moreover, a new tax has been introduced even after the implementation of Value Added Tax . As per the WTO guidelines, no other tax is to be introduced after the implementation of the VAT."

"Hemant Rathi, senior vice-president, Maharashtra Chamber of Commerce, Industry & Agriculture, said, " Hike in motor vehicle tax may increase the state's revenues temporarily but by such an action, the state is trying to kill the goose that lays golden eggs".

"The decision to set up a study group to review all non-tax registrations and licenses is laudable. The announcement of a new investment policy to upgrade the state infrastructure is also welcome, but one can compliment Patil only if these schemes are implemented speedily and properly, said, Dhananjay Bele, president, Ambad Industries and Manufacturers' Association. President of the Indian Merchant Chamber (IMC), Rajesh Kapadia, said, "The finance minister could have used this opportunity to make important concessions and announcements to ensure that the industrial growth in Maharashtra does not lose its momentum."