Trade hails Budget, suggests 1 slab GST

Hyderabad: Giving eight out of 10 points to the Union Budget -2017, Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI) on Wednesday expressed satisfaction over the 10-point focused budget.

Barring certain issues regarding ease of business, overall it was more than good, according to FTAPCCI president Ravindra Modi, who also felt that there was nothing much on taxation for industry as GST coming into force from July 1.

The trade body also suggested that the Centre formulate one slab and one tax rate policy under GST regime.

Modi said: “We’re expecting some policy framework on exit norms for the industry and startups as well. If industry-friendly exit policy framework is there, then entrepreneurs come forward to take business risks.

Coming to GST, we strongly feel one slab and one tax rate. The 12 per cent flat GST rate is more advantageous for the industry. Overall, I give eight points out of 10 for the new budget.”

Union Finance Minister Arun Jaitley, in his budget speech, announced a policy on tax concessions for start-ups. According to the new budget, firms incorporated after March 31, 2016 get a three-year tax holiday in the first seven years of their existence as against the existing rebate in the first five years.

Modi also appreciated the Finance Minister for announcing air transport development to be taken on PPP model.

FTAPCCI also hailed the tax rebate for small and medium enterprises (SMEs) with annual turnover up to Rs 50crore. “The budget announced a five percentage point rebate on corporate tax to 25 percent from the earlier 30 percent.

This will ease pressure on margins.” However, the TFAPCCI executive members felt the need to reduce corporate tax for bigger companies with turnover exceeding Rs 50 crore.

Budget seemed to cover all factors, but there was no mention about ports development, observes Gowra Srinivas, Senior Vice President, FTAPCCI. He further said: “The Centre has been talking about water transport, but nothing mentioned about it in the new budget. Rural telecom has been given major thrust in the budget.”

TS Appa Rao, who just joined FTAPCCI as Secretary General, said that previous two budgets by Arun Jaitley were focusing on infrastructure and “the new budget has given more thrust to education and healthcare sectors. The extension of ITIs to 600 districts is really a welcome feature in the budget.”