Congress in Goa today dubbed the Union Budget as being "full of rhetoric" and said some of its proposals are going to adversely impact tourism sector, the backbone of the state's economy.
"The Budget is high on drama and rhetoric. It shows how serious the Narendra Modi government is about its promise of ushering in "ache din" (good days). This Budget is going to kill Goa's tourism for good," Goa Pradesh Congress Committee General Secretary Sunil Kawathankar said.
"The Budget is a long list of disappointments. Goa's tourism-driven economy is already reeling under Swachh Bharat cess and this new 0.5 per cent Krishi Kalyan Cess to be levied on all services is going to make living more expensive.
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"So expect more expensive trips to shops, restaurants and hotels. An additional infrastructure and agriculture cess will make tourism costly in Goa, which is already considered as one of the most expensive tourist destinations in India and world too," he added.
"A pollution cess of 1 per cent on small petrol cars, 2.5 per cent on diesel cars of certain specifications and 4 per cent tax on higher capacity sedans will upset taxis and private car operators. Travelling will become dearer."
"After making a lot of noise about Make in India, it is shocking to see Minimum Alternate Tax (MAT) of 20 per cent being levied on startups.
"This totally does away the so called advantages which were supposed to be provided to startups," he said.
Kawathankar said the Modi government, which promised to bring back black money, has allowed the banks to write-off loan defaults to the tune of over Rs 125 lakh crore.
"The list of defaulters include many of its dearest corporate allies," he charged.
"Rather than getting all the money back, the Centre has not only allowed the defaults to be written off but has no credible plan for strengthening banks with just Rs 25,000 crore earmarked for recapitalisation," Kawathankar said.
"A three-fold increase in Securities Transaction Tax (STT) on sale of an option will be a huge deterrent for new entrants and also affect established players in the stock markets," the Congress leader said.
"Goa, just like the rest of India, shall witness some high skills migration abroad as high net-worth individuals will be hit hard on increase in surcharge to 15 per cent. They shall also be facing Dividend Distribution Tax of 10 per cent in case dividend is over Rs 10 lakh," Kawathankar said.
