Kolkata: Seeking a minimum of five per cent agricultural growth in the next financial year, the ASSOCHAM today called upon the government to impose two per cent cess on agricultural industrial activities.
“The government should impose two per cent cess on agricultural industrial activities to ensure a minimum five per cent agricultural growth from the next financial year and to realise the Prime Minister’s call for an all-inclusive growth,” the ASSOCHAM said in its wish list for the Union Budget of 2007-08.
It said that in the era of globalisation, the government should encourage mergers and acquisitions with incentives on taxation, besides helping domestic business acquire ventures overseas.
“Disinvestment of leading PSUs should be encouraged through the IPO route without privatising them and the government should retain 51 per cent equity on profit-making PSUs without losing management control,” the ASSOCHAM said.
With the current rate of taxation on industry standing at about 40 per cent, it demanded a reduction in corprate tax to 25 per cent and removal of surcharge on such taxes.
Calling for creation of employment opportunities through productive measures, it said that the government should show zero tolerance towards corruption and malpractice in business while showing fairness to the industry.