KOCHI: The business fraternity in the city is rife with speculation about what Finance Minister Pranab Mukherjee will provide for the commercial capital of Kerala when he makes his budget speech on Friday. The majority of them believe that the Budget will be frugal, reformist and pro-growth at the same time. They also expect that the Budget will give due consideration to the basic infrastructure developments in the city. Tourism is another sector that needs a thrust, entrepreneurs believe. “The remote and far-flung areas where agriculture-potential is very little offers possibilities for tourism. We hope the government identifies the possibilities of such areas and come up with measures to tap them,” said Confederation of Indian Industry (CII-Kerala Region) chairman Jose Dominic. Meanwhile, the office-bearers of Kerala Chamber of Commerce and Industry (KCCI) said they expected more investment in projects like Vizhinjam, Vallarpadam and Kannur. “More projects need to be initiated on a PPP (Public-Private-Participation) mode. We expect the removal of duty charged on LNG and natural gas and floating of new investment projects to help necessitate job opportunities for NRIs,” they said. The commercial bodies also believe that the trade and industry will have something favourable for it in the Budget. “Many anomalies and shortcomings of the existing provisions need to be rectified. Rationalisation of taxes and streamlining of procedures are absolutely essential,” said Cochin Chamber of Commerce and Industry president P Narayan.He said the government should take concrete steps to encourage manufacturing through incentives and other sops. “Urgent steps to boost business confidence and capital inflows need to be taken. Agriculture, power generation, infrastructure development, research and development and healthcare spending need to be given special attention in the Budget,” he added.The business organisations also hope that the Budget will focus on enhancing investments, foreign investment in infrastructure needs to be promoted by easing norms for entry of foreign funds. “We hope the government would roll out and implement a full Goods and Services Tax (GST) and also eliminate Fringe Benefit Tax (FBT). A clear road map for implementation of the Direct Taxes Code (DTC) and GST needs to be outlined in this year’s Budget. We understand that a negative list of services is being proposed to be introduced, but we feel that a detailed and thorough study is required before the same becomes a reality,” he added.The Commercial bodies feel that the current rate of excise duty needs to be retained in view of falling industrial growth. Tax refund procedures for exporters of goods and services must be simplified and authorities should ensure that refunds are made within a reasonable time period.
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