The Hindu Business Line : Trade bodies welcome Kerala budget proposals

Kochi March 9 The trade and industry in the State have welcomed the Kerala Budget, saying that the Finance Minister has given emphasis on the need for the businessmen and the department to work together for the sustained growth of trade and commerce.

Mr K. Retnam, President, Indian Chamber of Commerce and Industry, said that the trade body welcomed the proposals to give due encouragement to different categories of genuine trade in the form of state award, for reduction in the threshold limit for Green Card, adalat for refund of VAT etc.

The Minister has accepted the chamber's suggestion for a special effort for amicable settlement of all long pending cases under the KGST Act. The proposal to start Helpline at all important check posts is good, provided they prove to be really helpful to the trade, he said. However, the proposals relating to electronic filing and payment exceeding Rs 20,000 by cheque or DD should have been avoided considering the practical difficulties of the trade, he added.

Mr Navas Meeran, Chairman of CII-Kerala, said that integration of VAT rates with other States is a good move and the Minister has heeded to the request of CII to resolve the VAT related procedural issues. However, the Budget lacks focus and long-term programmes on critical growth sectors for Kerala such as food processing, IT and ITES, biotechnology, tourism and medical tourism, value addition in exports. Pumping money into ailing public sectors such as KSRTC would be a drain on our resources, he said.

Mr A.P.M. Abdul Raheem, President of the Kerala State Small Industries Association, said that the budget has given more emphasis for the development of SSI sector and the decision to reduce the tax to 4 per cent for white wood used to manufacture matchboxes would benefit the SSIs. The proposal to give importance to energy sector would directly help the industrial development in the State.

Mr P.V. Alexander, Chairman of the First Commodities Exchange of India Ltd, said that Budget provides nothing to the ailing coconut oil industry, neither in the form of incentive nor relief. With the present high tax structure, very soon Kerala cultivation would also cross over to the neighbouring States, he added.