India Inc rolls out budget wishlist

India Inc has called for necessary fiscal measures to revive growth momentum of the economy.
At their meeting with Finance Minister Pranab Mukherjee, the industry made plethora of suggestions to spur demand in the economy and boost business confidence while providing the congenial environment for promotion of investment.
In its pre-budget memorandum, CII suggested that the budget 2009-10 should be an ‘investment budget’ to enable India to deal with the global economic crisis. and aim at leading the economy to a 8 per cent plus growth in the coming year  
Action would need to be taken on fiscal prudence, capacity creation, promoting investments and fuelling consumption, stressed the Memorandum, CII President Venu Srinivasan suggested.
Facilitative milieu
“We suggested that external forces are unlikely to provide a facilitative environment for India’s economic growth in the near future, and that the impetus for the economy would need to originate internally,” he said.
Recognising the stress on fiscal situation, we have not called for lowering of key excise and direct tax rates. Instead, we have suggested that India needs to undertake large investments in physical and social infrastructure that would accelerate internal growth momentum,” he added. ficci President Harsh Pati Singhania mooted a four-pronged strategy to push investment-led growth, stimulate demand through fiscal measures, launch a second green revolution and give a fillip to social sector reforms.
Investment allowance
“Such a broad-based strategy would pave the way for bringing  back the growth trajectory to 9 per cent and lead to financial and social inclusion,” he suggested.  
To promote investment the Ficci has demanded reintroduction of  investment allowance, restoration of depreciation rate to 25 per cent,  abolition of controversial Fringe Benefit Tax (FBT), lowering of corporate tax and raising the maximum tax bracket for personal income tax. Assocham has called for stepping up investment in infrastructure, stimulate demand, moderate corporate tax and reduce Income Tax rate.
It pointed out that slowdown in India’s economic growth, deceleration of industrial production and wide spread recessionary conditions in many other countries have shaken the consumers’ confidence, resulting in contraction of demand for goods and services.
There is urgent need to stimulate demand by reducing personal income tax rates by 5 per cent points and increasing the threshold limit to Rs 2 lakh.
Net tax saving in the hands of consumer will have multiplier effect on the demand the chamber suggested.