Trade, industry hail union budget

Written by Agencies | Coimbatore, February 29: | Updated: Feb 29 2008, 20:24pm hrs
Tirupur Exporters' Association (TEA) has welcomed the union budget for 2008-09,saying it was more beneficial to farmers and also to basic income tax payers.

Hailing the reduction of CENVAT from 16 to 14 per cent, TEA president, A Shaktivel in a statement appreciated the allocation of more fund for infrastructure and power related projects.He also welcomed the setting up of textile parks in the country, especially Erode.

However, Shaktivel expressed disappointment the budget not considering issues like reduction of interest rates, exemption of service tax and fringe Benefit tax, refund of State levies and taxes and also refund of hedging cost, sought by the exporters.

Meanwhile, D Balasundaram, president, local chapter of Indian Chamber of Commerce and Industry told reporters that the impact of waiver of rs.60,000 crore farmer loans, would have an adverse impact on Banks and also Capital market.

Terming the budget as overall favourable one, he, welcomed measures, like reduction of excise duty to 14 per cent from 16 per cent, five per cent reduction on steel melting scrap, powerloom park in Erode, duty reduction to 12 from 16 per cent for small cars and two wheelers.

Muthusami, president, Coimbatore DIstrict Small Industries Association, also welcomed the budget and said that it would benefit small industries. Increased allocation to the education and health sectors were also welcome steps, he said.