April 25, 2024 23:19 (IST)
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ICC presents pre-budget suggestions to MoF
Kolkata, Jun 11 (IBNS): A delegation of senior industrialists and businessmen from the Indian Chamber of Commerce (ICC), Calcutta on Tuesday presented the pre-budget suggestions for 2014 - 15 to the senior officials of the Ministry of Finance (MoF).
The Chamber representatives, particularly emphasized on the need for regaining the growth momentum and suggested that the corporate tax rate in India must be brought down to the global average of 25 percent and levies like surcharge and education cess must be removed to generate more investible surplus with the corporates.
Strongly objecting to the proposed GAAR rules, the Chamber noted that even the talk of introducing the GAAR must now be dropped to dispel the psychosis of uncertainty among investors, both foreign and Indian.
Further, the practice of retrospective amendment of tax laws must be given a go by at this juncture, the delegation demanded.
The Chamber further spoke of the necessity to incentivise investment flows and suggested restoration of the earlier depreciation rate of 25 percent and extension of the additional depreciation of 20 percent to all machinery and plant.
Stressing that power is the prime mover for industrial growth, the Chamber suggested that the benefits of section 80I for power generation be extended over the 12th Plan period and the Investment Allowance of 15 percent be made available to this sector.
The Chamber emphasized that 'Brand Building' is essential for Indian products to be globally competitive and hence 5 percent of turnover of Indian brands should be admissible as a standard deduction for income-tax purposes or a weighted deduction of 200 percent of the relevant expenditure on 'Brand Building' should be allowed as deduction.
The Chamber also pointed out that in the absence of quality in-house R & D in India, significant expenses are incurred on royalty payments to foreign suppliers.
The Chamber suggested extension of the weighted deduction for in-house R & D expenses to all manufactures.
Agricultural infrastructure needs considerable investments and hence Section 80IA benefits must be extended to all such investments like IT infrastructure, computers, VSAT, Solar Panels, Water harvesting facilities, Storage etc, the delegation said.
For preservation of the eco-system the Chamber suggested tax exemption for incomes generated out of the sale of carbon credits and weighted deduction for CDM technology investments.
To build infrastructure facilities, construction companies should be granted relief from MAT, the Chamber suggested.
On Indirect Taxes, the Chamber strongly emphasized on the need to introduce the GST urgently, which would help to bring down cost of manufacture by avoiding cascading effect of taxes.
The CST should also be brought down from 2 percent to 1 percent.
The Chamber also made several suggestions on service tax, central excise and customs duty matters to streamline their working and to provide exemption to essential services.
The Chamber representatives also made some suggestions on sectoral areas like Steel Industry, Power Generation, Aluminium & Bauxite Industries, Construction Sector, etc.
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