Industry seeks clear roadmap for corporate tax cut

Augment public investment in infra

 Industry chambers on Wednesday unanimously demanded a clear-cut roadmap for reduction in the corporate tax rate from 30 per cent to 25 per cent.

In a pre-Budget meeting with Finance Minister Arun Jaitley, industry bodies Federation of Indian Chambers of Commerce and Industry (Ficci), Confederation of Indian Industry (CII),  Associated Chambers of Commerce and Industry of India (Assocham), and others, demanded an early implementation of the Goods and Services Tax (GST), and increase in public investment in infrastructure

“Demand conditions remain subdued and the appetite for investments in the private sector is below par. Given that exports will remain on a declining trend on account of global economic downturn, it is imperative that domestic demand is stimulated,” CII said, adding, “CII would recommend that capital expenditure on key projects in sectors such as roads, railways, irrigation and power be increased substantially.”

“Particular attention should be paid to rural demand, which can be supported through spending on rural roads and irrigation. Allocation should be increased on schemes such as the Pradhan Mantri Gram Sadak Yojana and the Pradhan Mantri Krishi Seenchayi Yojana. Such spending would have a much greater impact on the rural economy than spending on subsidies or employment guarantees,” CII said.

Assocham suggested for eliminating all surcharges on corporation tax and service tax as that did not promote ease of doing business.

“As the government draws up a plan to eliminate exemptions and reduce the corporate tax rate, we feel that it must simultaneously look at reduction in the Minimum Alternate Tax rate,” Ficci said.

The Federation of Indian Export Organisations (FIEO) recommended removing the inverted duty structure anomalies in the Union Budget, as it not only affects exports, but also the manufacturing sector.

Reform request  

     Industry bodies seek reform roadmap from the government
     Ask for quick decision and implementation on GST, other laws
     Want the government to perk up the rural economy
     Exporters’ body call for removal of duty structure anomalies