GCCI lauds budget, except few taxes

GOANEWS DESK, PANAJI | 18 March 2013 23:06 IST

The Goa Chamber of Commerce and Industry has lauded the budget presented in the House today, except few reservations about infrastructure tax and commercial tax in few areas.

The press note released by GCCI president Mangirish Pai Raikar states as follows:

Last year had been very critical because of the closure of the mining industry. The Chief Minister mentioned that the contribution of mining industry to the Gross Domestic Product of the state was 20.21%, The revenues declined was estimated at Rs. 1400 crores.. Besides, the repayment of earlier liabilities to an extent Rs. 1350 crores, there was  additional burden on the exchequer. The growth fell to 8.94% while presenting the budget the  Chief Minister has projected growth of 12% for the coming year 2013-14.

The fall in revenue has given very little economic space to the Government  and yet  the Chief Minister has been successful in keeping the revenue deficit to 3.93 %  which is itself a very satisfactory and that he has kept the target of 3.12 % this year is sufficient to build confidence.

The Chamber had recommended for removal of entry tax on  raw material with respect to Small Scale Units. Last year the slab of exemption for entry tax was increased to Rs. 30 crores. Due to our request this year the entry tax  has been removed and the Small Scale Industries has been given relief  by making provisions for augmenting availability of water and power.

His promise of getting the new investment policy before 30th May is a welcome statement. The Industry is looking forward for it very eagerly along with the transfer policy guidelines to be announced by GIDC.

The long standing demand of the Chamber  to protect the local traders from the regular exhibitions of lifestyle products at various centres in Goa  is taken care of in this  years budget. We whole heartedly welcome this step.

The high end vehicles were taxed at higher slab last year this had affected the growth of the automobile industry. Considering the industry representation, the budget has now reverted back to a VAT rate of 12.5% this will help the sale and growth of automobile sector in Goa.

The Chamber  had requested not to levy or hike any taxes. This has been accepted by the Government. The Chief Minister has given impetus to build better infrastructure and to make available adequate  water and power to the industry.

The Government in its last year’s budget had made bold announcements with respect to Social Security Schemes which were based on the revenue collection from different sectors. Unfortunately the revenue loss of Rs. 1400 crores due to the closure of Mining Industry has hit the Government’s working to a great extent. . Attempts are made to plug the leakages by various means. The Chief Minister intends to strengthen the system of delivery by using technology and Adhar Card .

He has laid emphasis on the agricultural sector to create jobs for the rural youth. Besides there is a plan to increase the agricultural yield to fulfill the needs of the state.

He also wants to streamline and improve the educational system. He has planned for better facilities as far as health is concerned and has made provisions for the citizens to get the facilities of treatment as far as the super speciality treatment is concerned.

His idea of building apartments could help middle  income group families to fulfill their aspirations of owning residential accommodation. But at the same time the increase in the in the infrastructure tax for residential and commercial establishments could increase the cost of construction.

As envisaged by the Government. we sincerely hope that the mining industry would start its operations with the clearance from the Supreme court and other Government Agencies, which could help the Government to achieve its goal of 12 % growth in the State.

The various powers given to the Commercial Taxes will not only help to plug the leakages. The anti evasion bureau will help to curb the illegal practices and also give immediate solutions and relief to the assesses. Various another measures introduced  with regards to commercial tax will help to bring system in the department and also would ease the assessment process and help to simplify the processes.

We welcome the statement of the streamlining the govt administration and brining in technology to do away with the corruption.

Considering the overall constraints the Chamber feels that the Chief Minister has done a god job of balancing all the factors and taking into account  the interest of  common men and the industry.

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