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Tax relief to middle-class highpoint of union budget: Jammu industrialists, traders

However, while describing it as a high-point of the budget, they are slightly miffed that no specific package or provision aiming at spurring growth of Jammu, or for that matter J&K, has been announced
11:13 PM Feb 01, 2025 IST | GK NEWS SERVICE
tax relief to middle class highpoint of union budget  jammu industrialists  traders
Tax relief to middle-class highpoint of union budget: Jammu industrialists, traders
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Jammu, Feb 1: Union budget 2025-26, presented by the Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman in the Parliament, Saturday has made Jammu industrialists and business bodies buoyant over tax relief to the middle class, which ultimately will “boost economy, easing financial stress.”

However, while describing it as a high-point of the budget, they are slightly miffed that no specific package or provision aiming at spurring growth of Jammu, or for that matter J&K, has been announced.

Hailing it as “otherwise balanced budget”, they, pining for a better deal for Jammu industrialists, mince no words suggesting that it has fallen short of businessmen’s expectations in the Union Territory, more so in Jammu.

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“If you ask me, the budget has come out with a balanced approach to spur growth. Overall it presents a laudable growth model maintaining balance and covering all crucial sectors. At the same time, to be specific about Jammu industrials, we're a bit hurt as our long pending demands for a special package for traders, businesses here and Public Sector Undertaking have not been met. Budget has fallen short of our expectations as far as the special package for tourism or industry is concerned,” Jammu Chamber of Commerce and Industry (JCCI) president Arun Gupta shared with Greater Kashmir.

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“We also welcome relief granted to people dependent on rented income and cancer patients. Other than Jammu specific grouse, overall, the budget is aimed at spurring growth positively touching almost all sectors. It is balanced with focus on all major sectors like defence, health, agriculture, development, exports, women, youth, lower middle class people and ‘Make in India’ mission,” he said.

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At this point, he reiterated that the budget should have made certain provisions for establishing some Public Sector Undertaking (PSU) to boost industrial development and give a fillip to generate employment.

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“We had hoped that while announcing the budget for the UT of J&K, the government would announce establishment of a big tourism destination in Jammu to increase the footfall of tourists in Jammu as the rail and road connectivity up to Kashmir valley will definitely harm the economic growth especially of Jammu city,” Gupta pointed out.

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Enumerating positives of the budget, JCCI president described the addition of 36 lifesaving drugs in the list of medicines fully exempted from the basic custom duty as a welcome step as it would provide a big relief to the patients especially suffering from severe chronic diseases like Cancer etc.

“Setting up of Day Care Cancer centres in all district hospitals in the next 3 years is also a welcome step. No Income tax payable up to income of Rs 12 lakh; 100 percent coverage under Jal Jeevan Mission until  2028 with an enhanced total outlay for quality of infrastructure and maintenance of rural piped water supply schemes through “JanBhagidhari” too are welcome steps,” he said.

Chairman ASSOCHAM, J&K Council, Manik Batra was in particular effusive about the relief granted to the middle class.

“Union budget is laudable and the Union Finance Minister Nirmala Sitharaman deserves accolades for a very thought-out budget exercise. It has focussed on the middle class, a major contributor to Indian GDP. With regard to Rs 12 lakh tax slab exemption, by standard deduction, it will be around Rs 75,000 (standard deduction). It simply means that salaried employees will not have to pay any tax upto Rs 12.75 lakh – this is a big difference of around Rs 5 lakh or so as compared to existing slabs,” Batra explains high-point of budget in the form of major relief for middle class.

Sharing how it is going to make the economy buoyant, Batra points out, “This will improve market sentiment; enhance spending power and give a boost to the tourism sector."

Another buoyant point, he discovered in the Union budget, was related to Micro, Small and Medium Enterprises (MSMEs).

“There are around 5 Cr MSMEs in India, which provide employment to around 7.50 Cr people; contribute up to 47 percent in exports; 36 percent in GDP. When we talk about “Viksit Bharat”, “Make in India” or “Make in India” as a global export hub, MSMEs have a very vital role to play, so the provision of Rs 1.50 lakh Cr for MSMEs in the budget through different schemes like “Credit Guarantee schemes”, collateral free loans, which will also see an increase this year,” he noted.

“If you have to expand your unit, you need loans for different heads including machinery. Unit expansion increases employment opportunities. There are 10 lakh registered micro units (enterprises). Budget also provides for a provision for them in the form of special credit cards enabling them to avail loans up to Rs 5 lakh,” Batra says.

“Similarly women entrepreneurs will be provided loans up to Rs 5 lakh. Then a provision of Rs 10,000 Cr for funding start-ups is kept. The budget has also come out with many interventions and reforms in the agri sector. Health sector has also emerged as a focussed area in the budget spelling out many benefits vis-a-vis medicines besides resolving to make India as “Medical Tourism hub”. So I would say, overall this is a good budget.”

Co-chairman ASSOCHAM, J&K Council Bhupesh Gupta too sounds very enthused about the union budget as he says that it has exceeded even their expectations.

“Middle section is back-bone of the economy. We were anticipating Rs 9-10 lakh tax slab exemption. Therefore, of course Rs 12 lakh exemption has brought wider smiles and louder cheers. Rs 10,000 Cr provision for start-up; enhanced loan provisions for SC, ST women entrepreneurs, farmers; provisions for expansion of MSMEs and relaxation in health sector reduction in custom duties of expensive life saving medicines or drugs and equipment all are positive indicators of the budget, aiming relief to common masses,” he stated.

Another Jammu businessman Aditya Suri too describes the budget as “Thumbs up budget.”

“Almost all sectors have been covered with greater relief for the middle section. I will say that the vision of this government is very clear and effort has been made to help resolve financial woes of majority sectors,” he said. Yet at the same time, he too points towards the J&K-specific grey area in the budget.

“We were anticipating the J&K industrial corridor. J&K Industrial Policy has lapsed. It does not talk about specifically to spur growth of J&K industries,” Suri said.

Chairman Federation of Industries, Jammu & President, BBIA, Lalit Mahajan lauded revision in turnover classification criteria for MSMEs; credit cards for micro enterprises and enhanced credit guarantee cover for micro and small enterprises and above all Income Tax exemption to Rs 12 lakh per annum.

Absence of J&K specific provision in the budget, he too finds “disappointing.”

“There is no proposal for the extension of the central package of incentive for the existing as well as new units of J&K for which approximately 300 applications for the registration are pending with the Industries Department of J&K."

“We request both the central and J&K leadership to provide the adequate funds for the grant of fiscal incentives for the existing working industrial units suffering very badly due to dilution of fiscal incentives from approximately Rs 1800 Cr per annum to Rs 500 Cr,” he said.

Rahul Sahai, Chairman, Indian Chamber of Commerce, Jammu Chapter found the union budget as a “well disciplined financial plan that aligns fiscal discipline with economic growth, ensuring sustainable development while boosting key sectors.”

“It has emphasised skilling, education, training, agriculture, research and small industry exports backed by real schemes and financial support with a key highlight of increase in individual tax exemption from 7 percent to 12 percent, enhancing disposable income and driving economic activity,” he noted.

“While Jammu and Kashmir was not specifically addressed in detail, future announcements regarding the NCSS package and related schemes are anticipated,” he struck an optimistic note.