Union Budget: Med experts upset, leather traders happy

CHENNAI: While the politicians in the Dravidian state have termed the union budget as Bihar's budget, there are some silver linings too, if one goes by the reactions of the Tamil Nadu industry sources.

The traders doing leather business in Chennai, Vellore and Vaniyambadi are hoping that the full exemption of customs duty on wet blue leather may bring some relief as the industry has been facing tough competition from global leather players spread over China and Brazil.

At the same time, the medical fraternity is upset over poor allocation for health and the import tax levied on medical equipment.

"This is the first time the leather and footwear industry is given a role in the budget and would bring growth to the industry," said M Rafeeque Ahmed, former chairman of the council for leather exports.

It may be noted that Tamil Nadu contributes 38 per cent of the country's leather and footwear production.

"Tax deductions on certain essential drugs are a welcome step, however, a more impactful reform would be a complete tax exemption on all health care related products making medical care more affordable,” opined Dr VP Chandrasekaran, COO, SRM Global Hospitals.

“While the budget includes a few positive measures it fails to drive real health care development. The lack of adequate funding, low insurance claim limits and high taxation on medical necessities continue to hinder the sector's growth. More comprehensive long-term strategies are required to truly uplift the health care in India," Chandrasekaran added.

TAX TALK

There was a slowdown in the Indian economy. The new step is favourable for the middle class, unlike the previous ones as they would be able to spend more now. There would be growth and investments will also increase, "

– TJ Joseph, Wealth management professional

The return filing should be made very simple. So that everybody can individually go and disclose their income and file the income tax return. Now public paying taxes can have some money try for investments like mutual funds

– Dayanand Krishnan, Activist and civil engineer

It's a great move and it will put money into the hands of the salaried middle class which forms the backbone of the economy on the consumption side. This will increase the savings and investments. Lifestyle expenses like buying two-wheelers, cars, and homes will accelerate. This move will have a cascading impact on the consumption economy and do well for the GDP

– V Gopalakrishnan, Economic consultant

This is a welcome decision for the middle class. But it is applicable only in the new tax regime. For the amount up to Rs 12 lakh, there is a rebate given and above that there is a tax payment. There won't be any benefit for the people who intend to save and the rebate amount would be used for expenditure

– Lawrence Thangasamy, Chartered Accountant