Budget Rightly Focuses On Agriculture & Rural Economy- ASSOCHAM
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) termed Budget proposals 09-10 for `aam adami’ as it focussed on rural, agrarian and social sector, which will create huge demand for goods and services for Indian Inc. which is the need of hour. The Chamber has appreciated the increased focus being given on national security and higher education.
In a statement, ASSOCHAM President, Mr. Sajjan Jindal said, “abolition of FBT, Commodity Transaction Tax are especially welcome feature”. The Finance Minister gave sufficient indications for disinvestment to contain fiscal deficit and generate resources for infrastructure development”. Industry has been widely anticipating a road map for disinvestment and eagerly waiting announcements for abolition of FBT and CTT, added Mr. Jindal.
However, the ASSOCHAM Chief expressed concern saying that the Finance Minister’s treatment to MAT was against the expectations of industry as it has been increased. The ASSOCHAM had recommended a 7.5% ceiling for MAT.
Likewise, the ASSOCHAM was expecting surcharge on corporate tax which has not happened since India is an economy which is competing with country like China, Hong Kong, Thailand, Malaysia and many other where corporate tax is much lower.
Mr. Jindal also stated that certain sectors which are severely hit by slowdown such as housing, tourism, IT should have been given adequate consideration in the budget.
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