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Tamil Nadu Industry bodies, businessmen term budget as 'growth-oriented'

South India Chamber of Commerce and Industry President R Ganapathi described it 'futuristic' and savings driven growth budget.

Published: 05th July 2019 07:41 PM  |   Last Updated: 05th July 2019 07:41 PM   |  A+A-

Budget (Express Illustration)

Budget (Express Illustration)

By PTI

CHENNAI: Industry bodies in Tamil Nadu Friday termed the union budget growth-oriented with the focus on overall development of all sectors.

South India Chamber of Commerce and Industry President R Ganapathi described it "futuristic" and savings driven growth budget.

The government has rightly focused on electric vehicles, rural empowerment and overall economic development, he said.

However, with the importance given more towards electronic vehicles by way of tax concessions, duty reduction, the existing auto sector component manufacturers will be affected severely as they have invested substantially, he said.

Hindustan Chamber of Commerce President P Rajendra Kumar said the focus has shifted from agriculture, industry, defence to rural, urban, youth, MSMEs and startups.

"This is first time we are hearing of such special emphasis on these sectors", he said.

The proposal to levy tax deducted at source on two per cent on cash withdrawals exceeding Rs one crore coupled with absorption of charges for digital transactions by banks is a move to put a check on black money transactions.

Toy manufacturer Funskool India CEO K John Baby said the government's move to continue with the policy of phased reduction in corporate taxes is a welcome step.

The widening of annual turnover from Rs 250 crore to Rs 400 crore will reduce tax liabilities for a large number of firms and boost profits in the long term, he said.

Sundaram Home Finance Managing Director Srinivas Acharya said the budget is pro-housing with clear emphasis on affordable housing.

"The extra tax benefit on interest on loan for affordable housing is most welcome. It will not only push sales but also help in reduction of the unsold inventory," he said.

Chairman of city-based realtor Akshaya Pvt Ltd, T Chitty Babu said the proposal on additional tax relief of Rs 1.5 lakh in addition to existing Rs two lakh for residential homes of upto Rs 45 lakh will be seen as a major boost to the real estate sector in the country.

The government's focus to align the definition of affordable housing in the Income-Tax Act with GST Acts and the proposal to increase the limit of carpet area in metropolitan and non-metropolitan regions is a welcome move for home buyers, he said.

House of Hiranandani Founder-Director Surendra Hiranandani termed the budget as a budget for all.

"India's real estate sector has a reason to cheer as Finance Minister (Nirmala Sitharaman) has announced a range of sops for real estate developers as well as home buyers," he said.

The measures are expected to boost housing sector as well as investor sentiments in the near future and would provide ample opportunities for home buyers to invest, he said.

Roca Bathrooms Managing Director KE Ranganathan said, infrastructure building in the form of road upgradation, water for all villages by 2024, Swachh Bharat Mission, angel tax relief for start up investments are in the right direction to stimulate growth.

However, he expressed disappointment to see no reduction in Goods and Services Tax for essential items like bathroom products.

"Taxes at 18 per cent for a hygiene product is still a cause of concern for real development in sanitation," he said.

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