MANGALORE: While a majority of the traders and industrialists in Dakshina Kannada district have welcomed the Union Budget proposals for 2005-06, some others have expressed concern over 0.1 per cent tax on withdrawal of Rs 10,000 from banks in a day.
The President of the Kanara Chamber of Commerce and Industry (KCCI), Mr A. Srinivasa Rao, told reporters here that the boost to textile sector should encourage industrialists to set up units at the proposed Export Promotion Industrial Park (EPIP) in Mangalore.
"The KCCI will make all efforts to invite textile industries in the proposed EPIP," he said. Referring to the Rs 10,000-crore allocation for the special purpose vehicle, to be formed for infrastructure funding, he said Mangalore airport, which is being upgraded now, should benefit from this fund.
Welcoming the proposal to earmark Rs 630 crore for the National Horticulture Mission, the President of the Karnataka Cashew Manufacturers' Association (KCMA), Mr K. Prakash Rao, said that this will give boost to the cashew industry. "It is a sort of OK budget for an ordinary industrialist," he said.
Both Mr Srinivasa Rao and Mr Prakash Rao said that the decision to introduce value-added tax from April 1 will help trading activities.
While Mr Srinivasa Rao expressed concern over introducing 0.1 per cent tax on withdrawal of Rs 10,000 from banks in a day, the President of the Kanara Small Industries Association (KSIA), Mr M. Krishna Bhat, termed it an excellent move. This will bring down cash transactions and will encourage other mode of transactions such as cheques and cards, Mr Bhat said. He expressed unhappiness that no special benefit has been announced to small-scale industries. Though the Minister has announced the introduction of a Bill on Small and Medium Enterprises Development, he has not said when will it be introduced, Mr Bhat added. Dr N.K. Thingalaya, an expert in rural banking and former CMD of Syndicate Bank, said the Budget proposals have shown that the emphasis of the Government has shifted from urban development to rural development. The Minister's efforts will help bring down the gap in rural and urban income.