FM assures new direct tax code, 9% growth

FM assures new direct tax code, 9% growth
The Economic Times, August 4, 2009, Page 9

Mahima Puri NEW DELHI

FINANCE minister Pranab Mukherjee on Monday assured industry leaders that the economy will return to a growth rate of over 9% in 2011-12 after expanding at 7% this fiscal, said an industrialist who attended the minister’s address to over 80 industry leaders here.

Mr Mukherjee also assured business leaders at the national council meeting of the Confederation of Indian Industry (CII) that the government will come out with a new direct tax code by August 20, said another industry representative.

Industry captains, including Godrej Industries chairman Adi Godrej, Hero Honda CEO and MD Pawan Munjal, Bajaj Auto chairman Rahul Bajaj, Religare Enterprises chairman Malvinder Singh, Eicher Group chairman S Sandilya, HSBC group general manager and country head Naina Lal Kidwai, SAIL chairman S Roongta and Nasscom president Som Mittal attended the meeting, according to the source.

“The finance ministry has prepared the direct tax code, as outlined in the Budget speech last month. It will be available for consultation in the next couple of weeks,” said an industry executive, who attended the meeting but did not wish to be identified.

The minister also reportedly told them that economic reforms, including disinvestment was on track. “While talking about PSU disinvestment, the minister said the process was very much on the cards, but added the amount that would be raised would depend upon market conditions,” said another CII national council member.

He quoted the finance minister as saying that the government’s borrowing programme will be conducted in such a way that the private sector’s requirements are met.

Mr Mukherjee also reportedly said although the Indian economy was showing signs of recovery, the global outlook still remains a concern. The Indian economy is not isolated hence a cautious approach is required. The FM also hinted that the government was taking a relook at the proposals for a bill on land acquisition, participants at the meeting said.