You are here: Home » News-IANS » Business-Economy
Business Standard

Industry demands income tax cap of 20 pc

IANS  |  New Delhi 

Bringing down the maximum slab to 20 per cent, convergence to three-four slabs and bringing all items under it were among the demands made to Union Minister on Wednesday by industry and trade representatives.

During his pre-Budget consultations, Jaitley urged business leaders to invest in the infrastructure sector to build a stronger India.

He said private investment, along with public and foreign investment, is the key to boost growth and create more job opportunities in India.

The Minister said the government had taken various steps, including setting up of the National Investment and Infrastructure Fund (NIIF), to boost investment in the infrastructure sector.

Industry representatives made various suggestions, including bringing down maximum to 20 per cent to encourage investment, a Ministry statement said.

The stakeholders also highlighted the need for only three-four slabs under the Goods and Services (GST) regime and to include in it all items excluded till now.

They also demanded that the benefit of filing quarterly returns under the be extended to all, instead of limiting it to those with a turnover of above Rs 1.5 crore.

They urged the government to permit the purchase of Banks Recapitalisation Bonds by institutes and the public at large, reduce government stake in public sector banks, and allow banks to securitise their loans and sell the same.

The government should consider further consolidation and even privatisation of some of the public banks, having at the most five to six large banks, they said.

At the meeting, industry body Ficci's President Pankaj R. Patel pitched for board rate cuts for businesses and individuals to spur domestic investment and demand.

Patel said the move will help in retaining India's overall competitive environment globally.

Ficci stressed that many key global economies were opting for significant rate cuts. "for instance, the US is on the verge of historic reform that proposes to cut the

corporate rate from a top rate of 35 per cent to 20 per cent as well as provide relief to individuals and that this approach should also be followed by India."

The Ficci President also stressed on the need to consider the impact of the dividend distribution and the buyback

"Together with the basic corporate tax, this pushes India's overall rate for companies well beyond 40 per cent, which is quite high," Patel said.

"Another suggestion was made to bring a 'scrap scheme' to take more than 15-year-old heavy commercial vehicles off the road since the demand in this sector is at its peak today. This will help in generating employment opportunities as it will bring about large-scale private investment in this sector," the statement said.

The stakeholders also suggested incentivising industry for larger women participation in industrial jobs, including subsidy for providing transportation facilities for women and incentives for running women dormitories.

Various other suggestions relating to various benefits for industry and trade were made, including consideration of across-the-board rate cuts for businesses and individuals.

--IANS

vv-rv/bg

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, December 06 2017. 21:08 IST
RECOMMENDED FOR YOU
RECOMMENDED FOR YOU