Bangalore: Launching an attack on his critics, Chief Minister Siddaramaiah on Sunday asserted that his government was pro-industry and not anti-industry as projected by some people.
“Some say I am from a rural background and believe only in the development of rural areas. All these are baseless arguments. I understand that development of industry, agriculture and service sectors is inevitable for the development of Karnataka. Infrastructure and investment across all regions is a must to fight unemployment and migration to cities.
Bangalore is buckling under an acute shortage of basic infrastructure — from roads, housing, water, power to transportation — and slums are cropping up due to Bangalore-centric growth of industries.
It is time to think of a policy that moots inclusive growth,” said Siddaramaiah while addressing a meeting with members of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI).
The CM expressed the hope that a meeting with the trade and industry body once in two months, and a ‘face-to-face discussion’ on the sector, would lead to the evolution of a new Industrial Policy for 2014-19.
He admitted that reduction in value added tax (VAT) was not an option this year, as the Centre had released only Rs 600 crore as central sales tax (CST) compensation to the State against a total due of Rs 1,565 crore for 2010-11. He assured industry that VAT would be reviewed next year.
Yesterday, I met Union FiÂnance minister P. Chidambaram to discuss the CST compensation and the implementation of Goods and Service Tax (GST), which can bring in uniform taxation.
However, he clarified that it would be difficult this year due to economic slowdown and agreed to release part of the CST dues. VAT has increased from 5.5 per cent to 14.5 per cent since 2006. If I had continued as the state finance minister, I would not have allowed it.”
The chief minister blamed the poor tax collection and huge burden of ‘carry forward’ (dues) accrued during the previous BJP rule for the inadequate funding of infrastructure projects in the State.
“A common demand of industries, investors and the citizens has been better infrastructure. But we are unable to set aside funds for infrastructure development this year, as loan waiver announced by the BJP government has imposed a huge burden.
The cost-sharing railway projects worth Rs 12,000 crore and tax dues of Rs 2,000 crore in Bangalore alone have tied our hands. Strangely, Karnataka, which had always topped in tax recovery, is yet to ring in 20 per cent growth this year.
Given the target of Rs 38,000 crore, I seek your co-operation to enhance tax collection. I also assure you that your demand for better infrastructure will be considered in the next Budget.”
Earlier, FKCCI president P Shivakumar sought revival of the mining industry in the State and also urged the CM to provide support for building Sir M Visvesvaraya auditorium to commemorate FKCCI’s centenary year (2016).
