Report on the Seminar on July 13, 2004 "Analysis of Union Budget for the Consumer".

CFBP had organized a seminar on the "Analysis of Union Budget for the Consumer" on July 13, 2004 at the Babubhai Chinai Committee Room of Indian Merchants Chamber.

Mr. Dinesh Parekh, Vice President, CFBP welcomed the gathering and explicate the importance of the seminar. He further elaborated on the role played by CFBP for improving the image of businessmen and to protect the interest of Consumers.

Mr. Dinesh Parekh then offered a floral bouquet to the speakers Mr. Anil Harish, Mr. Anant Patwardhan and Mr. Vivek Patki.

Mr. Subash Chander Gogia, Hon. Secretary & Chairman Programmes Committee explained the importance and relevance of the seminar. He also stated that CFBP will organize more programmes on various topics like Insurance, Credit Cards, Mobile Phones, VAT, Loans / EMI, etc., which will enable the consumers to take an informed decision.

Mr. Gogia then gave a presentation on the Union Budget for the consumer. His presentation was focused on the following aspects:

He further stated that this Budget is Only For 7 Months. New Budget Will Come By February 2005. CFBP and Consumer Organizations can present certain recommendations to the Finance Minister by December / January based on our experience of this Budget. CFBP will coordinate with the Consumer Organizations to present their views to the Finance Minister. He then introduced the speakers of the seminar and requested to present their views on the Budget.

Mr. Anil Harish, Advocate, enlighten the gathering about the consequence of the Budget especially for the consumers. He further stated that over the years our Government has improved the rates of taxes. Taxes are the price we pay for civilization. He further clarified that there will not be any tax liability for income upto Rs. 1 lakh, which will result into loss in revenue of Rs. 7,000 crores. Mr. Anil Harish explained the complicated implications in very simple words. He emphasizes on the following points:

Mr. Anant Patwardhan, Ex-Chairman, CGSI, in his address, thrown sufficient light on the problems encountered by the consumers. He further stated that the responsibility of education cess is cast upon honestly tax payers. The cess is on every tax that is to be paid, which means there can be multiple taxation on the same product. Whether it is excise, or customs, or the central sales tax, thus the increase in price for any product will not be just 2 % but could vary.

With the increase in the excise duty on steel, as also the cess, the prices of every consumer goods is likely to go up substantially, especially the car prices, the cupboards, the refrigerator the washing machines. So also the prices of fuels will go up substantially which will also exert it cascading effect on the prices. The cess on all indirect taxes with multiple tax incidence will spare no one and the more likely to be affected are the poor and the lower middle class.

Mr. Vivek Patki, Consumer Activist, elaborated effects of the Budget on consumers in his valuable address. He stated that the people who are retired at the age of 58 are not entitled to the benefits available to the Senior Citizens. He further stated the Finance Minster has to give enough attention to this issue. He also stated that the prices of Oil have to be control since it has cascading effect on the economy. Which leads to rise in transportation cost, vegetable costs etc.

He also pointed out that in this budget service tax is levied on the services provided by cable operators. But since long time the cable operators are collecting service tax from consumers. He also stated that the time has came to take strong measures about the provisions of Section 278 which provides for punishment of imprisonment on the basis of mere allegations.

The speakers then satisfactorily answered all the questions raised by the audience.

Mr. Bhanu Vakil, Hon. Treasurer, CFBP then gave vote of thanks and expressed his gratitude towards speakers, sponsors, representatives of various newspapers - News Channels and the gathering.

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