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ASSOCHAM urges govt to reduce corporate tax

ANI  |  New Delhi [India] 

has suggested the in the customary pre budget consultations with Minister to reduce the Corporate to 25 percent in order to encourage large investment by domestic and foreign corporates in

This step will be in line with countries like the US, which is also in the process of making major cuts, and and Middle East, which already have lower rates.

The apex industrial body also urged the to consider increasing import duty on metals like steel, aluminium, copper and zinc as high competition in the sector has adversely affected domestic metal sector.

"This sector's competitiveness is adversely affected due to high cost of electricity and other inputs and at zero or concessional duty rate from countries like Korea and under trade agreements," said.

It also called for an urgent need to critically review the implementation process of economic reforms introduced during last one year like GST, demonetisation and Insolvency law, and take corrective steps in consultation with the industry.

also asked the to take corrective steps for particularly the SME sector and also the large industry segments like textiles, which have been negatively affected by complex compliance procedure.

"The tax refund to exporters has been considerably delayed affecting their working capital. This has reduced the export growth of sectors like leather and textile, which has huge employment potential," it added.

It urged the government to fix accountability of tax administrators as there is fear of tax terrorism prevalent in trade and industry and also to consider revising the tax exemption limits for senior citizens and salaried employees.

"Tax exemption limits for senior citizens and salaried employees should be increased who are adversely affected by inflationary impact in food items and items of daily use during recent past," the industry body also stated.

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

First Published: Wed, December 06 2017. 16:00 IST