Union budget ‘09
July 6, 2009: Union Budget 2009
The Indian Chamber of Commerce and Industry, Coimbatore welcomes the growth oriented Budget 2009-10 presented by Shri Pranab Mukherjee, Hon’ble Union Finance Minister. Our Chamber welcomes the following features, incorporated in the budget:
a) Abolition of ‘economically unviable’ Fringe Benefit Tax (FBT).
b) Announcement that Goods and Service Tax (GST) will be introduced from 1-4-2010. The Government has to clarify many issues relating to dual GST: Central GST and State GST.
c) Announcement that new Direct Tax Code will be introduced within another 45 days to facilitate introduction of GST.
d) Announcement regarding reduction of Customs Duty on Cotton Waste from 15% to 10%.
e) Announcement that a National Web Portal will be established so that job seekers can register online from any where and approach any employment exchange for jobs. This will lead to reduction in number of people unemployed.
f) Announcement for establishment of Handloom Cluster in Tamil Nadu.
g) Announcement that income tax form Saral will be simplified and new form will be introduced.
h) Announcement on increased allocation of 87% to JNNURM - Rs.12,887 crores.
i) Hon’ble Finance Minister’s announcement that allocation to National Highways Authority and National Highways Development Programme to 23% is disappointing. However, the announcement that IIFCL, will evolve a takeout financing scheme in consultation with banks to facilitate incremental lending to infrastructure sector is a welcome one. This will make available more funds with PS Banks which may be made available to Industry.
j) The announcement that businesses to be incentivised by providing investment linked tax exemptions rather than profit linked exemptions is a welcome one. However, the scope of this programme is now limited only to ‘cold-storage warehouses and natural gas or crude or petroleum oil pipeline network companies’. This should be...