and Industry, Coimbatore
Press Release
February 16, 2009: Interim Union Budget 2009-10
Our Chamber is very much disappointed with the interim budget of Central Government for 2009-10. Our Chamber has requested that Fringe Benefit Tax and Settlement Transaction Tax should be abolished as both these taxes are economically unviable.
The Government has not announced any reduction in Central Sales Tax (CST) to 1 percent with effect from 1-4-2009 which means that this reduction is postponed to the next year. This is totally against the earlier announcement of the Government that the phased withdrawal of CST will be done as per schedule.
While reducing the rates of excise duty in December 2008, the Government has announced that this reduction will be only till 31st March 2009. There is no announcement on the extension of this concession after 1st April 2009, which means that the earlier higher excise structure may come into force from 1st April 2009. Our Chamber is seeking clarification from the Government on this.
The industry was expecting interest subvention of 4 percent where as only 2 percent interest subvention has been given which is a great disappointment to the exporters. We were expecting concessions, for the much beleaguered textile, auto and auto ancillary sectors and also MSMEs. But no announcements have been made to arrest further slide in these sectors.
Overall the budget is very disappointing and the industry and trade have to wait for few months for the new government to assume charge and for the full-fledged budget.
Mahendra Ramdas
President