Inaugurating a one-day seminar on `Union Budget-1998' organised by the Excise and Customs Practitioners' Association of Vadodara at Welcomgroup Hotel, he said that though Canada with a population of 2.8 crore had 2.2 crore people as tax-payers, India with a population nearing 100 crore had relatively less tax-payers.

Quoting Arthashastra, he said that even Chanakya advocated imposition of tax but said that it should be collected like a honeybee collected nectar from flowers without destroying it.

Bhardwaj also justified the imposition of service tax on professionals like chartered accounts and consultants saying that though a small percentage of tax levied on them would not affect them financially, it would certainly help the government in providing better facilities to the people.

People should pay tax for every service rendered to ensure economic resurgence of the country, he claimed.

In Western countries people were taxed for every service and it was because of this reason that economies in these countries were very strong and governments there could provide excellent services to their citizens, Bhardwaj added.

Welcoming the maiden budget of the BJP-led government at the centre, he said that the budgetary provisions were intended to create an environment of voluntary payment of tax.Defending the imposition of eight per cent duty on import of raw materials by the finance minister, Bhardwaj said that the new measure was intended to allow a level playing field and not as a protectionist measure as was being misunderstood by some quarters.

Imposition of that duty would enable the manufacturers, using indigenous materials, to compete with those using imported ones because import tax would then bring the cost of production at the same level, he pointed out.Justifying one per cent tax on petrol, he said that the main purpose of imposing the tax was to improve the roads and other infrastructure.

Yogendra Mahadevia, an advocate, while explaining the budgetary provisions for small-scale industries, observed that Inspector Raj in SSIs sector was not going to end despite assurances from the finance Minister.

He also termed the move to oust the jurisdiction of the tribunal in Modvat matters in the Finance Bill as ``unjust''. It would only increase harassment of the entrepreneurs, he added.

Another advocate R C Saxena was of the opinion that the Budget was not swadeshi as claimed by the finance minister. Criticising the new taxes on packed products like tea, spices, ghee, butter and sweets, he claimed that the levying of duty on imported raw materials would only encourage smuggling.