New Delhi: India’s new government should consider slashing corporate and personal income tax rates to revive demand and put the economy on high growth path, industry lobbies petitioned finance minister Pranab Mukherjee on Monday.
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In their pre-budget meeting with Mukherjee, who is expected to present the budget early next month, lobby groups sought measures to support manufacturing and export sectors that have suffered from a slowdown in domestic and overseas demand.
Chairman of Larsen & Toubro, India’s biggest engineering and infrastructure firm, A.M. Naik, said that long term interests rates for the infrastructure projects should be brought down and should not exceed 7-8%.
He also wanted income from foreign investment exempt from tax.
The chambers also sought pension, insurance and corporate bond market reforms on fast track, besides enhancement of personal income tax exemption limit.
They also wanted the government to either abolish of drastically slash the fringe benefit tax, surcharge and minimum alternate tax (MAT).
Confederation of Indian Industries (CII) also called upon the government not to change the peak customs duty rates and general excise duty rate of 8% to protect the domestic industries from foreign competition.
Associated Chambers of Commerce and Industry of India, Assocham, sought the extention of income tax exemption to exporters and software technology parks of India beyond 31 March, 2010.
Federation of Indian Chambers of Commerce and Industry (FICCI) sought a tax holiday for power projects beyond 2010 and withdraw service tax on packaged software to boost software exports and raise interest subsidy to 3% for exporters.
Video by Vaishali Jain