http://www.thehindu.com/2008/03/02/stories/2008030251250300.htm
GCCI hails Budget Special Correspondent Chidambaram hailed for scrapping banking cash transaction duty Chamber welcomes proposal to reduce excise duties from 16 to 14 per cent PANAJI: The Goa Chamber of Commerce and Industry (GCCI) on Friday complimented Union Finance Minister P. Chidambaram for scrapping the banking cash transaction duty. Reacting to the Budget proposals here on Friday, GCCI president Nitin Kuncoliekar said the transaction duty proved more of a nuisance to small businessmen. Though Goa did not get any specific relief, it would indirectly benefit in a major way on account of reduction of excise duty on pharma products from 16 to 8 per cent, he said. "This will mean that the excise benefit being enjoyed by such units in States such as Himachal Pradesh, Uttaranchal and those in the Northeast would no more be lucrative for pharma industry to engage in flight of capital from Goa," Mr. Kuncoliekar said. Reduced excise benefit may not make it that attractive to set up units in these States and this would help Goa as many pharma companies from the State, which were contemplating expansion plans in those States, would prefer to stay put in Goa, he said. Demands Stating that Mr. Chidamabaram had succeeded in "balancing the demands of economics with compulsions of politics," Mr. Kuncoliekar hailed the proposal to give relief to the average tax assessee. The chamber has welcomed the proposal to reduce the excise duties from 16 to 14 per cent and relief to service taxpayers by increasing the threshold limit from Rs. 8 lakh to Rs.10 lakh. A spokesman of the Travel and Tourism Association of Goa (TTAG) expressed unhappiness that no direct sop had been offered to the hospitality sector. The State's hospitality sector could gain from income tax holidays announced for hospitals as it was up for medical-tourism projects and also from the proposal that UNESCO-aided heritage site districts would benefit. A spokesman of the Goa Mineral ore Exporters' Association said that Goa's Rs. 5,000-crore export-oriented iron ore mining industry heaved a sigh of relief with the mining export duty remaining unchanged.