On a scale of 1 to 10, we would rate the Union Budget 2016-17 as 6,” said Utkal Chamber of Commerce and Industry (UCCI) president Ramesh Mahapatra.
Emphasis and large budgetary support has been given to agriculture and infrastructure. Other social sectors have also been given due importance. However, interest subvention for MSME units has not been considered as has been given in September 2015 to the exporting sectors at the rate of 3 per cent per annum, he said. Interest subvention is necessary to promote MSME units and to make them competitive because the lending rate is much lower in competitive countries like China, Thailand and Vietnam, etc., Mahapatra opined.
There was an expectation of some reduction in the Corporate Tax as had been announced by Finance Minister Arun Jaitley last year to bring it down from 30 per cent to 25 per cent in a phased manner. This year, some reduction of at least 1 per cent or 2 per cent should have been considered. This has not been done. However, startup units have been given a tax holiday, and new manufacturing units with turnover up to Rs5 crore per year would pay a reduced Corporate Tax of 25 per cent + Surcharge, he stated.
Mahapatra also said the Government should in a phased manner do away with subsidy given on food grains, fertilisers and cooking gas, etc., and restrict it to the absolutely needy families.