Stimulus should stay: India Inc
Times of India, January 6, 2010, Page 27
TNN, NEW DELHI
Top corporates and representatives of all the major industry associations, including Ficci, CII and Assocham, have urged finance minister Pranab Mukherjee that the stimulus package should continue for at least six more months, now that there are clear signs of economic recovery.
The FM's pre-budget meeting with corporate honchos — including Ficci president Harshpati Singhania, Videocon's VN Dhoot, M&M's Anand Mahindra, Tulsi Tanti of Suzlon, Ashwin Dani of Asian Paints and Swati Piramal of Assocham — on Tuesday unanimously held that tax sops announced by the government last year should continue for the time being.
After the meeting, Singhania told reporters that the industry urged the FM to bring down the Minimum Alternate Tax (MAT) from 15% to 10% as the effective rate for a MAT paying company and a regular tax paying company is about the same because of lower deduction for depreciation on book profits etc. MAT is no longer the minimum alternate tax, he said, adding that when a company is amalgamated or demerged, credit benefit of MAT should be available to the amalgamated company.
"The stimulus package should not be suddenly withdrawn but should be gradually phased out as the industry is just coming out of the recession and inflation rate has already increased significantly during December 2009," a statement from Assocham said.
The industry leaders also impressed upon the Pranab Mukherjee to empower the middle class by giving them more tax sops on personal income tax. It was suggested that the tax rate of 30.9%, inclusive of 3% education cess, on income of Rs 5 lakh and above be reduced to 30%.
All corporates were in favour of introducing indirect tax reforms through Goods and Services Tax.
Times of India, January 6, 2010, Page 27
TNN, NEW DELHI
Top corporates and representatives of all the major industry associations, including Ficci, CII and Assocham, have urged finance minister Pranab Mukherjee that the stimulus package should continue for at least six more months, now that there are clear signs of economic recovery.
The FM's pre-budget meeting with corporate honchos — including Ficci president Harshpati Singhania, Videocon's VN Dhoot, M&M's Anand Mahindra, Tulsi Tanti of Suzlon, Ashwin Dani of Asian Paints and Swati Piramal of Assocham — on Tuesday unanimously held that tax sops announced by the government last year should continue for the time being.
After the meeting, Singhania told reporters that the industry urged the FM to bring down the Minimum Alternate Tax (MAT) from 15% to 10% as the effective rate for a MAT paying company and a regular tax paying company is about the same because of lower deduction for depreciation on book profits etc. MAT is no longer the minimum alternate tax, he said, adding that when a company is amalgamated or demerged, credit benefit of MAT should be available to the amalgamated company.
"The stimulus package should not be suddenly withdrawn but should be gradually phased out as the industry is just coming out of the recession and inflation rate has already increased significantly during December 2009," a statement from Assocham said.
The industry leaders also impressed upon the Pranab Mukherjee to empower the middle class by giving them more tax sops on personal income tax. It was suggested that the tax rate of 30.9%, inclusive of 3% education cess, on income of Rs 5 lakh and above be reduced to 30%.
All corporates were in favour of introducing indirect tax reforms through Goods and Services Tax.
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