BHUBANESWAR: Industry veterans hailed the corporate tax cut announced in the Union Budget 2019-20 and welcomed initiatives like liquidity support to public sector banks, reforms in the real estate sector and pension for small traders.
At a post-Budget discussion organised by Indian Chamber of Commerce (ICC) here on Saturday, former director general of Utkal Chamber of Commerce and Industry (UCCI) Rajen Padhi said the focus has been laid on controlling the trade deficit which will boost the economy.
“India’s import was $176 billion more than the volume of export. Hike in import duty will help restrict the gap. The budget has also emphasised on education, infrastructure, rural economy, women and skill development. These sectors will witness high growth in the next five years,” he said.
The Budget’s focus on Maintenance, Repair and Overhaul (MRO) industry will lead to better employment opportunities and push the Make-in-India initiative further, he said.
“Odisha has the potential to transform into a MRO hub in the eastern region. However, the only loophole is lack of proper mechanism to monitor the implementation of policies. Banks have been infused with money by the Government. But instead of lending it out to MSMEs, the money has been kept ideal,” Padhi said.
Industry experts also hailed measures like recapitalisation of Rs 70,000 crores for Private Sector Banks (PSBs) as announced in the Budget to improve funding in the sector and ensure better regulation and governance.
Convenor of Finance and Taxation Committee of ICC AK Sabat said incentives like one-time six months partial credit guarantee to PSBs for the first loss up to 10 per cent for purchase of high-rated pooled assets of financially sound non-banking financial companies will address the liquidity problem.
Co-chairman of ICC Odisha State Council JB Pany analysed the key highlights of the Budget and discussed direct and indirect taxation initiatives and its implication on industry and other sectors.
Additional duty on petrol and diesel will affect the middle class and fuel price rise, he added.