FICCI Demands Tax Cuts
It seems the leaders of FICCI met the Revenue Secretary Bhide , yesterday and sought
1. reduction in corporate tax rate to 25 per cent
2. reintroduction of investment allowance
3. continuation of tax holiday benefits for housing, telecom and power sectors
4. reduction in personal income tax rate to 25 per cent
5. that tax holiday benefit period for IT and software sector to be extended beyond 2010 and Section 80HHC (exemption of export profits) temporarily revived.
6. excise duty rate of 8 per cent and service tax at 10 per cent be continued at least till the next fiscal.
7. reduction in central sales tax (CST) rate from 2 per cent to one per cent.
8. early introduction of goods and service tax (GST) regime
This is the problem with Captains of Industry and Trade in India. They know pretty well that a new Government is to be formed in a few days and the policies along with the Revenue Secretary may change. What is the point in making representations to the Revenue Secretary just three days before the Election Results are to be announced?
They had drafted their proposals and had to submit them to the Revenue Secretary and have their photo sessions. The RS must have had a good laugh.
In January, I had the privilege of being invited to a meeting of one of these Trade Associations where they discussed their proposals for suggestions to the FM for the Budget. I told them, this year there would be no regular budget and nobody is going to see their suggestions. They told me it was the tradition of the Chamber to have these meetings in January ever year and send their proposals to the FM. Stupid irritants like not having a regular Budget were not going to stop them from sending their suggestions to the FM.
Now you know why the Babus treat the trade with contempt?