Industry unhappy as AP overlooked, again

Vijayawada:

Industry

bodies in the state have expressed unhappiness over the Budget for ignoring AP’s interests. They, however, feel the

tax cuts

proposed by finance minister Nirmala Sitharaman may help in reviving the economy to some extent.

“It’s a balanced Budget, which clearly gives impetus to MSMEs and start-ups. Though the fine print is yet to be scrutinised, the reduced income tax rates may stimulate consumption,” Vijay Naidu Galla, chairman of CII-AP, said. Galla also welcomed the proposal to scrap dividend distribution tax, and Sitharaman’s focus on the need to honour contracts signed by the government. “The plan to set up a clearance cell to fast-track investment proposals is a positive step. The Centre’s plan to set up five new smart cities is also a welcome move. The Budget is good on many counts, but it is disappointing that there is nothing in it for the state,” he added.

D Rama Krishna, vice-chairman of CII-AP, said the Centre’s thrust on skills development and the plan to offer internship opportunities to engineers to work on municipal construction projects would help them get an idea of how the government works.

JSRK Prasad, a former chairman of CII-AP, praised the Budget’s focus to double farm income by 2022. According to P Ravi Kiran, chairman of CII’s Vijayawada zone, the removal of dividend distribution tax would encourage big companies to invest in the country.

“We were expecting some major reforms given that the economy has slowed down markedly, inflation has risen and jobs have disappeared instead of being created. The Budget is a disappointment because it has prescribed some cosmetic changes here and there without addressing the structural changes required to revive economic growth engines like real estate, manufacturing and mining,” said Potluri Bhaskara Rao, general secretary of AP Chambers of Commerce & Industry Federation.

“The finance minister has tweaked the income tax rates, and increased the slabs to six from the earlier three. I think the new slabs will only confuse taxpayers more. More importantly, however, it is disappointing that the finance minister did not announce any new spending for AP, which needs industrial investment following its bifurcation in June 2014,” Bhaskara Rao added.


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