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President’s Message |
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UNION BUDGET, 2008 The reliefs granted in Union Budget, 2008 has shown the rays of great hopes of prosperity of our country. As I mentioned in my last Presidential message that the new Budget has given a thrust for improvement of agricultural economy and the rural sector. A scheme of waiver of loans and debt relief for small farmers has been announced, which may involve an outlay of Rs. 60,000 crores including for repayments under one time settlement. There are very important and appreciable steps taken for improvement in agricultural economy. However, what has been given by the Union Budget is being taken away by the price rise and soaring inflation. Public at large is badly affected by the high price rise of essential commodities which is bound to affect not only the trade industry but equally the professionals. International Monetary Fund (IMF) has even asked Indian Government to take immediate steps to control the prices before the problem becomes entrenched and spills over. The annual rate of inflation which was below 4% in January, 2008 has gone to about 7.41% towards the end of March, 2008 and is likely to move up. Eventhough the Government of India have taken the steps for banning the exports of various commodities namely non-Basmati rice, pulses, edible oil, cement etc. to contain inflation but banning the exports may also affect the growth of industry unless the Indian market is able to consume the entire production. When the entire World has become one Global Village and India has also become a developing country with advent of modern technology, it has become the duty of not only the politicians but also the professionals, specially the tax professionals, who have been the architect of various planning, to make sincere efforts for advising, suggesting and implementing the measures for checking the inflation in the country which has become politically a hot issue in the present days. I am sure that the members of the Federation will be able to contribute a lot to contain the problems which has arisen on account of soaring inflation and rising prices. Apart from the representation which was made by Federation before the Union Budget, 2008, AIFTP has recently made a representation to Hon’ble Finance Minister regarding the proposed reduction of Central Sales Tax from 3% to 2% w.e.f. 1-4-2008 which has not yet been made by the Government of India in spite of a specific statement in Para 183 of the Budget Speech made on 29th February, 2008 by Hon’ble the Finance Minister in the Parliament. The said representation is being pursued at various levels so that a decision may be taken for reduction of CST from 3% to 2% which is one of the considerations for implementation of VAT in the country. I convey my best wishes to every member of the Federation for the New Financial Year 2008-09.
Bharatji Agrawal |