Kochi: The chambers of trade and industry in Kochi on Thursday generally welcomed the thrust by Finance Minister Arun Jaitely on various heads in the budget, but expected a further concessional rate in income and corporate taxes. “The tax proposals announced in the Budget are far below expectations. There have been no reductions in personal income tax rates which is disappointing. The reduction in corporate tax announced is far from satisfactory as it will benefit only MSMEs with a turnover of Rs 250 crore,” said Shaji Varghese, president, Cochin Chamber of Commerce and Industry.
He however welcomed the introduction of the standard deduction of Rs 40,000 in lieu of transport and medical allowance and the incentives announced for senior citizens. Jose Dominic, past chairman of CII Kerala and director of CGH Earth Group, said the proposals for the development of heritage sites, spreading regional air and rail connectivity, would boost the tourism sector in a big way. He was speaking at a discussion organized by the Kerala Unit of Confederation of Indian Industry at Kochi.
Most speakers said the budget was balanced with a focus on rural development, education, infrastructure and health care. Najeeb Zackeria, Managing director of the Abad Group, was of the opinion that the focus on affordable housing sector should help real estate development. He also welcomed the promise of finance minister to revisit the Indian Stamp Act.
Chairman of CII Kerala G. Krishna Kumar, Navas Meeran, past chairman of CII Kerala, M S. A. Kumar, former managing director of AVT Natural Products and several others highlighted the positive and negative points of the budget. Rudra Sensarma, Professor of Economics at the Indian Institute of Management Kozhikode, said the budget had a clear focus on farmers, poor persons, women and small businesses. “But salaried people don’t have much to cheer about. There is a small increase in deductions, no relief on taxes and an increase in the education cess”, he said.
