Roll back FBT or levy it as a credit against income tax: India Inc to FM
The Financial Express, June 2, 2009, Page 1
fe Bureau, New Delhi
India Inc on Monday urged the finance minister, Pranab Mukherjee to abolish fringe benefit tax (FBT) or alternatively allow it as a credit against income tax.
The three industry chambers of commerce and industry, which met the FM as part of the pre-Budget meeting, also urged for widening the tax base.
Briefing reporters, CII president, Venu Srinivasan said that the finance minister listened to their suggestions patiently and said that the customary reaction from the government would be reflected in the Budget.
According to the charter of demands from CII, special focus should be paid on corporate taxation. It also said that for industry make some headway through difficult times an investment allowance package needs to be introduced, which would mean considerable cost savings for businesses.
CII also suggested that the depreciation rates for plant and machinery should be raised from 15% to 25%.
For individual taxation, CII recommended that the threshold limit of exemption of all individual assesses should be further increased by Rs 50,000, which would have positive impact on savings and consumption.
On its part, Harsh Pati Singhania, president, Ficci urged the finance minister to script a four-pronged strategy to push investment-led growth, stimulate demand through fiscal measures, launch a second green revolution and give a fillip to social sector reforms. Such a braod-based strategy, he said, would pave the way for bringing back the growth trajectory to 9% and lead to financial and social inclusion.
Singhania suggested that there is a need to re-introduce investment allowance, restore the depreciation rate to 25%, provide 100% depreciation for investments made through energy service companies. The chamber also said that there is a need of lowering the corporate tax rate from 30% by a few percentage points. The government should also extend tax holiday benefit for power projects beyond 2010. There should be a raise in maximum tax bracket for personal income tax.
Swati Piramal, senior vice-president, Assocham said that there is an urgent neeed to stimulate demand by reducing personal income tax rates by five percentage points and increasing the threshold limit of Rs 2 lakh. She also said that there there is an urgent need for upgrading India’s infrastructure to improve efficiency and susutain economic growth. Pirmal said that more jobs need to be created in agriculture and small scale sector.
VN Dhoot, chairman, Videocon group said that there is a need to have low tax regime and widening tax base with better compliance. Dhoot also asked the government to ask banks to reduce interest rates by 200 basis points as fast as possible.
The Financial Express, June 2, 2009, Page 1
fe Bureau, New Delhi
India Inc on Monday urged the finance minister, Pranab Mukherjee to abolish fringe benefit tax (FBT) or alternatively allow it as a credit against income tax.
The three industry chambers of commerce and industry, which met the FM as part of the pre-Budget meeting, also urged for widening the tax base.
Briefing reporters, CII president, Venu Srinivasan said that the finance minister listened to their suggestions patiently and said that the customary reaction from the government would be reflected in the Budget.
According to the charter of demands from CII, special focus should be paid on corporate taxation. It also said that for industry make some headway through difficult times an investment allowance package needs to be introduced, which would mean considerable cost savings for businesses.
CII also suggested that the depreciation rates for plant and machinery should be raised from 15% to 25%.
For individual taxation, CII recommended that the threshold limit of exemption of all individual assesses should be further increased by Rs 50,000, which would have positive impact on savings and consumption.
On its part, Harsh Pati Singhania, president, Ficci urged the finance minister to script a four-pronged strategy to push investment-led growth, stimulate demand through fiscal measures, launch a second green revolution and give a fillip to social sector reforms. Such a braod-based strategy, he said, would pave the way for bringing back the growth trajectory to 9% and lead to financial and social inclusion.
Singhania suggested that there is a need to re-introduce investment allowance, restore the depreciation rate to 25%, provide 100% depreciation for investments made through energy service companies. The chamber also said that there is a need of lowering the corporate tax rate from 30% by a few percentage points. The government should also extend tax holiday benefit for power projects beyond 2010. There should be a raise in maximum tax bracket for personal income tax.
Swati Piramal, senior vice-president, Assocham said that there is an urgent neeed to stimulate demand by reducing personal income tax rates by five percentage points and increasing the threshold limit of Rs 2 lakh. She also said that there there is an urgent need for upgrading India’s infrastructure to improve efficiency and susutain economic growth. Pirmal said that more jobs need to be created in agriculture and small scale sector.
VN Dhoot, chairman, Videocon group said that there is a need to have low tax regime and widening tax base with better compliance. Dhoot also asked the government to ask banks to reduce interest rates by 200 basis points as fast as possible.
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