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India Inc pitches for lower tax rates
Corporate companies appeal the Union Finance Minister Arun Jaitley to support the domestic industry with a favourable tax policy and infrastructure development.
New Delhi: Corporate companies appeal the Union Finance Minister Arun Jaitley to support the domestic industry with a favourable tax policy and infrastructure development. Industry bodies Ficci, CII and Assocham have requested the Centre to slash corporate income tax (I-T) rate from 30 per cent including cess and surcharge. The wishlist of India Inc includes incentives on digital transactions, introducing radical steps to reduce litigation and strengthen dispute resolution mechanism in the forthcoming Budget to be unveiled on February 1. The industry has also appealed the Centre to focus on infrastructure, unveil measures to widen the tax base and lower personal income tax rates to boost consumption.
Ficci President Pankaj Patel said: “Since last year, the government has started reducing the corporate tax rate with a view to bring it down to 25 per cent by 2020. However, the progress has been a little slow, and only a few companies have been covered under the new tax regime so far. We would like this process to gain traction in the Budget. The lending rates should also be brought down and easy financing should be made available for sectors such as housing. These steps can prove to be a confidence booster among the business fraternity and would encourage investment demand as well.”
Assocham said: “Despite the tax revenue showing smart growth despite demonetisation, the biggest challenge before the government is to revive the urban consumer demand and provide a huge stimulus to rural economy which had to bear the maximum impact of the note-ban. Inflation may be down, but it has to be seen in the context of glut in many crops, especially vegetables, resulting from excess output and cash withdrawal in November,"
CII Director General Chandrajit Banerjee said: “We also believe that with more economic activity entering the tax net post demonetisation, government should lower corporate tax rate to 18 per cent in the Budget. Government has no doubt taken commendable initiatives and made fair provisions to minimize and reduce unnecessary litigation. However, much more needs to be done to further strengthen the dispute resolution mechanism in the area of both direct and indirect taxes.”
Ficci further asked the Centre to reduce the individual income-tax rates to boost consumer spending and encourage tax compliance, especially as the country has witnessed some amount of disruption post demonetisation.
