BUDGET
Ludhiana: Unlike her last budget, finance minister Nirmala Sitharaman this time managed to please businessmen by allaying their fears of new taxes or Covid cess due to the setback faced by the government in the pandemic.
Ludhiana businessmen were happy with the measures announced to control the incessant increase in the rates of iron and steel raw material. The steps included reducing import duty on semis, flat, long products of non-alloy, alloy and stainless steel. Exempting import duty on scrap was another major relief for furnace and other allied industries. The announcement of vehicle scrapping policy has fulfilled the long-pending demand of the auto parts’ and fasteners’ industry and it may boost the demand.
Pankaj Sharma, Chamber of Industrial and Commercial Undertakings (CICU) vice-president, said, “Though this Budget was more south and east India-centric, we are satisfied. Addressing the biggest problem of the engineering sector—the increase in the rates of iron and steel raw material in the past few months— the FM has reduced the import duty on several products. This will not only reduce the rates of imported raw material, but the local steel producers too will have to lower rates of their products to compete in the market.”
Though saddened by no major relief in tax reduction and income tax exemption limit enhancements, Inderjit Singh Navyug, former president of the United Cycle and Parts’ Manufacturing Association (UCPMA), said they were happy that no new taxes were imposed. “Besides, several revolutionary steps have been taken related to direct taxes, which will eventually benefit the business community,” he said.
Jaswinder Singh Bhogal, CICU vice-president, also felt that the budget focused more on southern and eastern states. “But we are happy about the commitments made on the healthcare sector. Though more could have been done for the farming sector, the announcement of adding 1,000 e-mandis is a good initiative. For micro, small and medium enterprises, allocation of Rs 15,700 crore is a welcome step, but it is yet uncertain where and how this amount will be spent,” he said.