FTCCI wants Centre to simplify tax system

Hyderabad: The Federation of Telangana Chambers of Commerce and Industry (FTCCI) has demanded the Union government to introduce simplification of tax system and moderation of tax rate and also incentives to MSMEs in the Union Budget 2021-2022 to be presented on February 1 by Union Finance Minister Nirmala Sitharaman in Lok Sabha.

The FTCCI said in a statement that Indian tax system continued to be complex with multiple rates at various levels of production and distribution. The various slabs for income tax as well as indirect taxes need to be moderated. Compliance mechanism also needs to be simplified. For new entrants, the complex and cumbersome taxation system is acting as huge deterrent, the Chambers Joint Director (marketing and PR) G Vinod Kumar said.

MSME sector should be given top priority in this budget as they are worst affected due to corona pandemic and incentivise them. The coverage of the MSMEs needs to be widened to incentivize manufacturing in hitherto un-incentivised areas such as agro MSMEs, he said demanded that the government to include tax exemption for companies making products in India.

Referring to the allocations to Telangana, the FTCCI said that in the last two budgets the State has received a raw deal with no major projects approved and allocated funds. There are many railway projects that were pending where detailed surveys were done yet works did not begin. Vinod demanded allocation of funds for development of infrastructure in Kakatiya Mega Textile Park set up in Warangal and also sanction Turmeric Board at Nizamabad.