Budget evokes mixed response amongst Kerala industrialists
CII (Kerala) Vice-Chairman CJ George said that proposals like taxing of the super rich and the tax on corporates will have a relatively 'dampening' effect.
Kochi: The Budget presented by Finance Minister P Chidambaram evoked a mixed response amongst the leading industrialists and bankers of Kerala. At least 30 odd industrialists participated in the budget viewing session organised by the Confederation of Indian Industries (CII) here.
CII (Kerala) Vice-Chairman CJ George said that "given the seriousness of the economic context in which the budget is presented, the Finance Minister did not have sufficient measures for revitalising the economy and its growth". The proposals like taxing of the super rich and the tax on corporates will have a relatively 'dampening' effect, he said.
The proposal to make mutual fund agents members of the stock exchange was a surprise element in the budget. The commodity exchanges and the commodity market could take a beating due to the commodity transaction tax (CTT), he said.
Shyam Srinivasan, CEO, Federal Bank, described the proposal to start a women's bank as a "headline item". He said the interest subvention on agricultural loans that was extended to cover private sector banks would help to increase agricultural finance in a state like Kerala where private sector banks are strong.
Shivdas B Menon of Sterling Farms said the proposal to increase allocation for the coconut replantation scheme will help Kerala. Coir industry will also benefit due to the incentives given to handmade coir carpets. Sanjay Vijayakumar, Managing Director MobMe, said the incubation centres will benefit due to the proposal to allow companies donate to such centres as part of their CSR activities.