NRIs unhappy with budget

DUBAI, FEB 28: Non-resident Indians (NRIs) have said the 1999-2000 budget was the best a coalition government could have given under the ...

DUBAI, FEB 28: Non-resident Indians (NRIs) have said the 1999-2000 budget was the best a coalition government could have given under the restraining circumstances but felt there was no major incentive to attract large-scale NRI direct investment.

Ram Buxani, chairman of the Overseas Indians Economic Forum, said though there was hardly any mention of NRIs who were recently called the national resource’, the scheme to mobilise idle gold was commendable.Presenting the 1999-2000 general budget in Lok Sabha, finance minister Yashwant Sinha said, under the gold bond scheme, selected banks will be permitted to accept gold deposits and issue interest bearing certificates or bonds which on maturity can be reclaimed in gold. This scheme would free depositors from the problem of storage, movement and security for the gold in their possession and also provide them a regular source of income. He, however, said the scheme to issue kisan credit cards to two million farmers without educating them would only create furtherbad debts for the nation.

Ajay B Bhatia, chairman, Bhatia Brothers group ofcompanies and president of Indian Association, Dubai, hailed the move to boost investment in capital markets by withdrawing long term capital gains on stocks.

He said the move to allow tax free export of culture by way of films and entertainment will help tourism indirectly. Suresh Kumar, governor of the Indian business council was of the opinion that some of the measures taken for boosting the capital markets were short-term as the macro economic fundamentals were not addressed.

S M Khalil, chairman of Elfinan Financial Investment Consultancy, said the budget was not growth-oriented as it had nothing for the industrial sector which had slowed down. He feared this may further bring down the consumer goods sector.

K V Shamsudheen, an investment consultant from Sharjah, said reduction of capital gains tax (CGT) to 10 per cent to Indian residents solved a long standing domestic demand. Tax exemption to dividend income for US 64will boost mutual funds and stock markets, he said.

Mahendra Asher, former president of the Institution of Chartered Accountants, Dubai chapter, said the reduction of excise duty and customs duty was a bold step and the country can look forward to entering the new millennium integrating with the global economy.