Ficci seeks speedy tax refund, wants no inheritance tax

Industry body Ficci today demanded speedy tax refund and said government should not make any move towards Inheritance tax in the upcoming Budget.

"Tax payers are indeed concerned about the substantial refunds pending at the tax office on account of both Direct and Indirect taxes. All pending refunds need to be granted forthwith, even when a case is chosen for scrutiny assessment," Ficci President R V Kanoria said.

In its pre-budget recommendation to the Revenue Secretary Sumit Bose, Ficci demanded improving dispute resolution mechanism and immediate implementation of Goods and Services tax (GST).

"To impose a tax which could potentially require a promoter to dilute his shareholding in a company merely to pay incidence of Inheritance Tax is likely to prove to be completely counter-productive. We strongly oppose any imposition of Inheritance Tax," Kanoria said.

In order to deal with the issue of accumulation of wealth, Finance Minister P Chidambaram had said the time has come for a debate on imposition of inheritance tax.

"Sometimes I doubt whether we have taken moderation (in tax rates) too far. Have we paid little attention to accumulation of wealth in few hands? I am still hesitant to talk about inter-generational equity and therefore inheritance tax. I think these are the questions we should debate," he had said.

Further, Ficci also suggested making public the final report of the Parthasarathy Shome Committee on GAAR and retrospective amendments.

It also sought clarity on newly implemented Service Tax regime, abolishing tax levied on dividends from overseas and continuing basic customs duties at existing levels till GST is introduced.