Our Bureau

Kochi , Dec. 31

THE Kerala Chamber of Commerce and Industry has submitted a pre-budget memorandum to the State Government requesting for fiscal discipline and transparency so as to allay the fears of trade and industry.

The chamber President, Mr E.S. Jose, said that the Government should act upon the State Budget by planning the allocation of funds to avoid reckless spending and lapse of funds.

Referring to export earnings, he urged the Government to take appropriate action for getting legitimate share from export earnings and infrastructure facilities for the export-oriented industries.

Kerala contributes substantial amount of foreign exchange earned by the commodity export as well as the manpower export.

The fall of revenue on account of sales tax exemption granted for the sale of export commodity should be compensated to the States. It is only just and equitable that a share of the export earnings is earmarked to the State for the development of infrastructural facilities, he said.

Though the Government has introduced new industrial and labour laws with revolutionary changes in the Head Load Workers Act, these are yet to be accepted by the labourers and trade unions. Unless an industrial culture and congenial industrial environment are created, there is no hope of industrialisation in the State, the chamber President said.

Sales tax is the major source of revenue to the State and the Government should take steps to augment tax collection. In order to enhance the tax collection, all the tax-related appeals pending before the authorities should be disposed on a war footing, he said.

Regarding the disinvestment of State PSUs, the memorandum appealed the Government to withdraw from the non-core and non-strategic areas.

At present, the Government is controlling various public sector undertaking. However, there should be a political will to privatise PSUs in the State to prevent a debt trap.

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