Media Release

Mangalore, Mar 21: Reacting to the state budget presented on Wednesday March 21, the Kanara chamber of Commerce & Industry (KCCI) says that the rationalization and simplification measures of taxes and reduction in VAT on some products are welcome. The introduction of 5% VAT on 'beedis' is the last nail on the coffin of the already dying Industry. Though the growth rates of agriculture, industry and services in nominal terms are expected to be 9.1%, 11.5% & 18.5% respectively, in real terms these are likely to be minus 2.9%, 3.6% and 10.6% with overall growth of 6.4%.

The proposal of converting the current intermittent water supply in the city in to a 24x7 step through PPP model augurs very well for citizens of Mangalore. The reduction in diesel tax rate by 1.25% is also a welcome move.

However, addressing the problem of connectivity through Shirady Ghat in real earnestness has not happened which will be a constant deterrent to the economic development of the entire coastal region. Thus the maximum utilization of the well equipped major port of Karnataka NMPT also remains a distant dream.

The KCCI's request for a maritime board to be set up and also the fishing harbour at Kulai has not materialized.

On the whole, it appears to be a populist budget trying to keep all sections and quarters of society satisfied with the taxpayers money. Also, the government should take up the responsibility of submitting a performance report of last years budget to the people of the state.