Terming the Union Budget 2015-16 as “balanced”, the Indian Chamber of Commerce (ICC) Monday said the target for lower deficit is a “very credible step for the financial markets” and is likely to “curtail debt accumulation and allow for robust outlays for infrastructure, agriculture, rural and socio-economic schemes.”
In a statement issued here, ICC said the lowering of corporate tax rate for new manufacturing units will promote growth of smaller enterprises and encourage entrepreneurship. Service tax exemption for construction of houses less than 60 sq metres along with waiving of dividend distribution Tax (DDT) on Real Estate Investment Trusts (REITs) will in turn make them attractive to domestic and foreign investors, it said.
The ICC alos welcomed the decision to introduce a comprehensive central legislation to deal with illicit financial schemes, which it said will protect small investors. The step to increase house rent allowance deduction from Rs 24,000 per annum to Rs 60,000 per annum will benefit the average employee, it added.
It, however, pointed out that Rs 25,000 crore allocation for recapitalization of public sector banks seems inadequate and was below market expectations.