Trade, industry hail new proposals, resent tax hike

By Our Special Correspondent

CHENNAI, AUG. 18. Industry and trade organisations, while welcoming the Tamil Nadu budget as growth-and-welfare-oriented and hailing proposals for new industrial parks besides the thrust to the farm sector, have expressed concern over the proposal to levy entry tax on some commodities and increase in tax rates on several items.

Describing the budget as a `path-breaking' one, the Confederation of Indian Industry (CII) suggested that the Government also address the ills of existing industrial estates. While participation of private sector in setting up star hotels in pilgrimage centres and other destinations would give a fillip to tourism, there was a need for substantial improvements in other areas of tourism infrastructure such as roads and sanitation. The Government should consider six-laning of the `golden pentagon' comprising Chennai-Coimbatore-Madurai-Tiruchi- Tuticorin for smooth and fast movement of goods, the CII said.

Mr. R. Muthu, president of the Southern India Chamber of Commerce and Industry (SICCI), welcomed the proposal for

zero-based budgeting. He said the intention to introduce entry tax and levy of one per cent additional sales tax in the turnover slab of Rs. 10 crore-Rs 25 crores was a disappointing feature. Mr. A. Bhawarlal Nahar, president, Andhra Chamber of Commerce, expressed hope that while framing legislation in respect of pollution by plastics, the views of industry and trade and steps being taken by other State Governments would be taken into consideration. The expansion of the purview of Additional ST did not take into account the higher rates of ST already effected to compensate for abolition of AST and went against the spirit of merging auxiliary levies. Mr. Kantilal A. Kamdar, president, Hindustan Chamber of Commerce, urged the Government to reconsider higher rates of tax imposed on several products in the course of rationalisation.

Mr. Syed Muneer Ahmed, president, National Chamber of Commerce, said the proposal to levy entry tax was ``likely to undo all the good work done by the levy of uniform tax throughout the country''.

Mr. Lalchand K. Nichani, president, Sindhi Chamber of Commerce, suggested review of the proposal to levy entry tax. Mr. S. Santhanam, president, Tamil Chamber of Commerce, called for a reconsideration of tax on items of consumption of the common man.

Mr. Ashok Kumbhat, president, All India Tax Payers Association (Tamil Nadu chapter), said the Finance Minister should have avoided increasing the tax on electronic goods from 8 to 12 per cent since this would lead to diversion of trade on account of eight per cent tax prevailing in neighbouring States.

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Section  : Southern States
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