Budget: City slams 10% surcharge on super rich
The surcharge of 10% on people having an annual income of Rs 1 crore has not gone down well with the cash-rich city.
Upkar Singh, general secretary of Chamber of Industrial and Commercial Undertakings (CICU), and Ashok Juneja, president of Punjab Tax Bar Association (PTBA), said this move would discourage the honest tax payers while the evaders would have no effect. The tax rate for all kinds of assesses should have been reduced with no surcharge, they added.
According to B R Kaushal, secretary general, PTBA, past experience indicates that whenever tax rates are brought down and exemption limits enhanced, the number of assesses and revenue both increased.
While the bicycle and auto parts industry was expecting a waiver of 12.36% excise duty or even a slash, they were left high and dry. A deputation of United Cycles Parts and Manufacturers Association (UCPMA) had also met Prime Minister Manmohan Singh before the Union Budget and they were hoping for some declaration for this industry.
UCPMA president Gurmeet Singh Kular said, "We had requested the PM and FM to abolish Central excise on a complete cycle set. This industry pays 12.36% Central excise on the raw material and other inputs which is not refunded anywhere. This makes us uncompetitive in international markets. However, Central excise on branded garments has been abolished ignoring our industry."
The cycle industry indicated that they would increase bicycle prices to make up for the losses. The cycle industry had also requested to cover them under technology upgradation fund, but it has not been done.
Upkar Singh added that the budget was not growth-oriented and was unimaginative and dull.
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