New Delhi: The government unveiled its Economic Survey for 2008-09, recommending sweeping reforms.
Click here to watch video
The survey suggests a dramatic deregulation of sugar and fertilizers by eliminating price controls and subsidizing consumers instead of producers.
It also proposes phasing out cesses along with the Securities Transaction Tax, the Commodities Transaction Tax and the Fringe Benefit Tax.
Other major recommendations include decontrolling petrol and diesel prices and ending the government monopoly in railways, coal, and nuclear energy.
India’s wholesale price index or WPI fell 1.3% in the week to 20 June. Analysts say the falling trend in the WPI would reverse following government’s announcement of fuel price hikes on Wednesday.
This was the third straight week the index has declined even as food prices remain high.
India’s top real estate developers want larger tax breaks for building low-cost homes. Developers like DLF and Tata Housing have launched several middle and low-income housing projects ever since the economic downturn slashed prices and sales. But they also want the government to reduce service taxes and also reduce transaction costs for homebuyers.
Mortgage lenders also want the government to increase the tax concession bracket on housing loans to two and a half lakh rupees from the current one and a half lakh rupees. The lenders also want tax relief for five year-deposits similar to what banks get.
Analysts say such measure could spur growth in the industry.
Stocks of computer training companies made gains on Wednesday based on expectations that the upcoming budget will offer them incentives.