The corporate sector will feel that Government is against industrial prosperity. Also it is a fact that every single paise raise in cost of production or in cost of sales, sure then those hikes would be reflected in their products selling rates, This will again swelling inflation. Our political people should observe how the advanced and developing countries are administering their governance.
The increase of surcharge for the year 2013-14 (just for one year), may increase the real tax rate by 1.5%. It may not be very big. But sentiment has effected as this is applicable to all profit making companies.
As it is the corporates and the companies engaged in business activities are severely hurt by the sloppy demand and slowdown, this additional burden would definitely eat into their dwindling profit share.