Logistics industry welcomes Budget 2013 | SupportBiz

Policy Notes

Logistics industry welcomes Budget 2013

 
Most industry stakeholders have given a negative feedback on the Union Budget 2013-14. However, there are some industry players who have shared their happiness over the provisions announced in the budget.

SupportBiz  presents the reactions of some players from the logistics industry  to the budget, most of whom are satisfied with it.

Aditya Bafna, Executive Director, Shree Shubham Logistics Ltd,  says, “Given the challenges faced at the macro-economic level, we would like to appreciate the efforts of the Finance Minister in delivering a pragmatic budget.  The special emphasis on the agriculture sector, including a guarantee of Rs. 5000 crore given to NABARD for the creation of additional warehousing facilities, will be beneficial for the sector.”

 Malcolm Monteiro, Senior Vice President and Area Director - South Asia, DHL Express, says, “The decision by the government to establish a panel to monitor the costs of doing business in India is really welcome. Logistics companies  hope that this will  lead to bold initiatives to reduce transaction costs of trading across India’s international as well as state domestic borders.”

“The industry was also hoping that announcements would be made to add clarity  to the design and the roadmap for the implementation of GST, but the same was not addressed,” Monteiro states.

On the aspect of removal of service tax on testing of agricultural produce, Bafna says, “This is a welcome step,  which will benefit farmers in a huge way   by helping in the reduction of  costs for those who want to test their produce. It  will also lead to th creation on larger testing facilities for  agricultural producers.”

Bafna also  states that  interest subvention for famers is yet another positive move by the Finance Minister,  which will help the farmers raise money against authorized WDRA (Warehousing Development and Regulatory Authority) receipts.

"Keeping agricultural commodities out of CTT (Commodity Transaction Tax) will lead to  increased trading in these commodities, which may lead to better price realisation for  farmers. We are also hopeful of  a positive impact  on the agriculture sector with the enhancement of agricultural  credit to Rs. 7 lakh crore.” Bafna  adds.

Krishan Sachdev, Managing Director, Carrier Midea India, adds, "The Union Budget was  what we had hoped for - a balanced budget. There has been no major change in the tax structure, which will provide the desired impetus to economic growth. Increased DDT and surcharge on corporate income, however, came as a surprise."