Industry chamber PHDCCI on Tuesday said it expects India's economy to rebound in 2020 and inflation to remain benign on account of reforms such as reduction in corporate tax.
"We believe that speedy implementation and synchronisation of various reforms will refuel our economic growth trajectory soon," PHDCCI President D K Aggarwal said.
He adding that 2020 will be a year of economic rebound, wherein the expectation is that the economy will regain its dynamic growth trajectory once again and take its position to become a USD 5-trillion economy by 2024.
The PHD Chamber of Commerce and Industry (PHDCCI) president said the economic reforms in 2019 were amazing as the government "reduced corporate tax significantly from more than 30 per cent to an effective rate of 25.17 per centand17.01 per cent for the new manufacturing units".
Besides, he observed that inflation in 2020 will remain benign except few fluctuations because of weather disruptions.
"At this juncture, the focus of the government must be to refuel the consumption demand with a significant reduction in the direct taxes. Thus, reforms in direct taxation are the need of the hour with remarkable rationalisation of tax rates in the forthcoming Budget," said Aggarwal.
The chamber suggested that there should be no personal income tax applicable up to the income of Rs 5 lakh for the individuals and income tax slabs should be rationalised to 10 per cent for people earning up to Rs 10 lakh per year, 20 per cent for those with an income of over Rs 10 lakh and up to Rs 20 lakh, 30 per cent for income over Rs 20 lakh and up to Rs 2 crore and 35 per cent for individuals earning more than Rs 2 crore.