Patna, July 5 (KNN) The Union Budget announcement by Union Finance Minister Nirmala Sitharaman will benefit the low and middle class families. However there are no new proposals made for Bihar, said P.K. Aggarwal, President, Bihar Chamber of Commerce & Industries (BCCI).

Previous policies relating to freight equalization, royalty on minerals and repeated floods in the State, resulted in huge losses year after year, he said.

President of the Chamber further reiterated that, "While submitting our pre-budget memorandum to the Finance Minister we had suggested that restoration of section 80IB (5) OF Income Tax Act 1961 as the restoration of section would provide tax exemption for 3 to 5 years to new industrial units set up in 26 districts of Bihar."

Also, to attract more capital investment in the manufacturing sector, tax holiday of at least for first five years be given for the growth of rural areas, he added.

He said that capital investment subsidy Rate should be made attractive. It will not only stop migration of youth from their own place but will also reduce increasing population and traffic load on the metro cities.

He further said that applicable of 1% cess on petrol & diesel, earning on 2 to 5 crore 3% and earning above 5 crore 7% additional tax will be a burden on the businessman, 2% levy or TDS on withdrawal exceeding 1 crore p.a will affect the business community because the traders purchase various items of goods in bulk from the farmers which requires cash.