Kochi: Industry captains flay decision on flood cess

Kochi: The chambers of industry in the state have expressed reservations about the finance minister's decision to impose one percent additional cess on all goods sold in the state coming under the GST band 12, 18 and 28 percent to raise resources for the reconstruction of the flood-hit Kerala.

The move to impose a one percent flood cess will have adverse impact on industries and also prove burdensome to the common man, said V. Venugopal, president, Cochin Chamber of Commerce and Industry.  Expressing happiness over the 7.18 percent GDP growth of the state, he welcomed the impetus provided in the budget for infrastructure development.

Allocations have been provided for railways, generation of electricity and construction of roads, he said. "A 515-km high-speed rail track costing Rs.55, 000 crore is an ambitious project. We welcome the decision to commence construction of high-speed railway track this year," he said.

Deepak L. Aswani, FICCI Kerala state council co-chair, described the flood cess as the biggest setback in the budget. It will be a huge burden on the people, especially traders and retailers who are working on thin margin.

 He, however, welcomed the increased allocation and development plans for sectors such as agriculture, start-ups, innovation, IT hubs, education and tourism development.

The flood cess is a major setback for the trading sector struggling to recover from the floods, said Madusudhan Gupta, president of Indian Chamber of Commerce and Industry, Kochi.