With the state budget out, Engineering Export Promotion Council regional chairman SC Ralhan said, During the last three months, through various notifications and this budget, the government has imposed a burden of more than Rs 3,000 crore on trade and industry by way of entry tax, electricity duty on power, electricity duty on gen set generation, VAT rate increase and VAT surcharge.

Reacting against the increase in electricity duty in the state Budget 2010-11, he said the government has made power costly by Rs 0.13 enhancing it by 3% from 10-to13%. During the last two years there has been 50% increase in power duty from Rs 0.36 in 2007 to Rs 0.55 in 2010.

He said the finance minister has not touched the industrial sector in general and export sector in particular in his budget speech and all provision in the budget and various earlier notifications, the transaction cost of exporter has further increased.

Industry feels that the increase in electricity duty and octroi on power should immediately be withdrawn. The state exporters are already suffering because of geographical disadvantage, foreign currency depreciation, increase in raw material prices, shortage of labour, increase in the freight cost.

And it is very disappointing that budget has increased the problems of the exporters of the state.

United Cycle and Parts Manufacturing Association president DS Chawla said it is unjust to increase the electricity duty because it would affect the industry badly.