From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Jun 22: With Karnataka Chief Minister Siddaramaiah planning to come out with the Congress government’s full-fledged budget for the current year on July 12, the Industry and trade bodies have demanded reduction of entry tax on diesel and petrol from 5 per cent to 3 per cent.

The slashing of entry tax on diesel and petrol would help the trade and industry, farmers and a large section of middle class vehicle owners, the trade and industry bodies said pointing out that the petroleum product prices were the highest in Karnataka among all States.

Federation of Karnataka Chambers of Commerce and Industry (FKCCI) and Karnataka Small Scale Industries Association (KASSIA) met the Chief Minister as part of pre-budget consultations on Satruday and urged him to exempt textile traders from entry tax and reduction of entry tax on machinery, spare parts, accessories and machine tools. In pre-budget exercise.

FKCCI also demanded that increase in the luxury tax levied for room rent above Rs. 1000 per hotel room as tax was presently being levied on rent above Rs 499 per room.

The Chief Minister held a day-long meeting with Finance and other department officials.

FKCCI president K Shiva Shanmugam and KASSIA president B P Shashidhar presented memorandums to the Chief Minister.

In order to address the investors’  sentiments, the industrialists demanded reduction of VAT to 4 per cent till such time as the index of industrial production improved.

KASSIA demanded that payment of VAT be allowed once a quarter as against the present practice of the SSI units making VAT payments in advance.

It also demanded abolition of entry tax to SSI units as was done by Madhya Pradesh.

FKCCI pleaded for writing off irrecoverable small arrears of commercial taxes which were not under litigation.

FKCCI also demanded online registration of vehicles. Now all new two-wheelers and cars are to be taken physically to RTO for registration as was the case in many other States.

On Agriculture Produce Marketing Committee (APMC) cess, traders demanded to reduce the cess from 1.5 per cent to 0.5 per cent on arecanut and reduce the cess on other products from 1.5 per cent to 1 per cent.

They also demanded abolition of trade license.

The FKCCI said there is a need to augment the power in generation, transmission and distribution through universal metering of all IP sets and monitoring the power consumed by the IP sets, reduction in the T & D losses, rectifying all unauthorized connections and replacing all old pump sets

It demanded allocation of Rs 500 crore to boost the tourism sector and creation of industrial corridors between Doddballapur and Chikballapur, Chikkballapur and Devanahalli, Hubli and Dharwad, Mysore and Hassan, Mysore and Bangalore and Hoskote and Kolar.