'Budget will have negative impact on industry'

HYDERABAD: Industrialists and members of Federation of Andhra Pradesh Chambers of Commerce and Industry expressed dissatisfaction with the union budget 2012-13 introduced in Parliament by fina

Published: 17th March 2012 03:11 AM  |   Last Updated: 16th May 2012 06:37 PM   |  A+A-

FA

Members of FAPCCI following the live telecast of Union Budget being presented by Finance Minister Pranab Mukherjee in Parliament, at a meet ‘Reflectio

HYDERABAD: Industrialists and members of Federation of Andhra Pradesh Chambers of Commerce and Industry expressed dissatisfaction with the union budget 2012-13 introduced in Parliament by finance minister Pranab Mukherjee.

Speaking to mediapersons after watching the budget speech on television, FAPCCI president V S Raju stated that this budget will have a negative impact on the industry with the centre’s decision to increase service tax from 10 per cent to 12 per cent and also the excise tax.

The budget also proposes to raise the standard rate of excise duty for non-petroleum goods from 10 to 12 percent, the merit rate from 5 to 6 percent and the lower merit rate from 1 to 2 percent, he said.

Vice-president of FAPCCI, Srinivas Ayyadevara said that the centre has exempted only 17 services from service tax, that means they would have the freedom to impose tax on any of the remaining services not in the list. Srinivas said claiming for exemption and getting it would be a long-drawn process.

The vice-president said centre is always concentrating on imposing indirect taxes and thereby burdening industries. Giving an example of the increase in railway freight charges by 20 per cent every year, Srinivas said that the govt was fearful of increasing passengers fares anticipating an angry reaction from common man.

But they never have second thoughts on imposing any tax on industry which makes doing business difficult, he said. The industrialists also sees some positives from the budget, such as introducing liberalisation of ECBs  which would boost various industries.

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