There is disappointment within the corporate sector due to the lack of any reduction on corporate taxation. “We have been asking for a cut in corporate taxes considering that its among the highest in India and the finance minister had himself said that tax reductions in the past have led to an increase in revenue collections. The cess coupled with the increase in dividend distribution tax which has gone up from 12.5 to 15 per cent means that overall rate of corporate taxes has actually gone up by 1.2-1.3 per cent,” Mitra said adding that given that the economy has been growing at such a high clip, there was a chance for further reforms which is lost.

But the biggest dampner is the expansion of the ambit of Fringe benefit tax with Employee stock ownership plan (ESOP) also being brought under its net. The industry has been hoping without any luck that FBT would be done away with completely but the move has not gone down well with anybody.

“There are some worrying points in the budget and FBT is one of those. We have been opposed to this form of taxation and bringing esops into its net is not a welcome step,” Seshasayee said.