CHENNAI: Madras Chamber of Commerce and Industry (MCCI) on Thursday said the Union Budget may not be a ‘Big Bang’ budget, but a balanced and growth oriented one.
Expressing satisfaction over some of the chambers’ recommendations being considered, MCCI president T Shivaraman said importance given to improve tax administration would reduce uncertainty and litigation.
The single window clearance concept for EXIM trade, he said is a progressive step in line with the Tax Administrative reforms. Thrust on industrial corridors and the proposal to relook and strengthen special economic zones were seen as steps that would help boost manufacturing. However, MCCI expressed disappointment at no reduction in corporate tax and the silence on corporate laws.
Shivaraman said salary exemptions provided in the budget is not at the expected levels. On the whole, the budget’s intent to improve fiscal discipline, rationalise taxation and subsidies and focus on infrastructure and manufacturing besides the social sector, are to be welcomed. Achieving the targets would depend on proper implementation, he added.
The TN Chapter of Federation of Indian Chambers of Commerce and Industry (FICCI), while welcoming the budget, said it had failed to meet the expectations of the common man and the industry.
Contrary to the great expectations, it proved be an interim budget with some tinkering changes here and there, said Rafeeque Ahmed, chairman, FICCI Tamil Nadu State Council. The Finance Minister, he said had not given any time frame for GST.
However, FICCI hailed setting up of a `10,000 crore fund to boost capital flow to startups and small and medium enterprises (SMEs) in the country.
Former Union Revenue Secretary MR Sivaraman said the budget though a good one was not an exceptional one as people would have expected.
The country had dropped from 131 to 134th rank in ‘ease of doing business rankings’ prepared by the World Bank, he pointed out and said government should have focused more on improving the investment climate. However, he hailed the government’s move to increase FDI in defence from 26 per cent to 49 per cent.