CII asks Govt to cut corporate tax to 30%

Monday, 30 December 2002, 20:30 IST
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NEW DELHI: The Confederation of Indian Industry (CII) today asked the Government to cut corporate tax rate for both domestic and foreign companies to 30 per cent apart from exemption from minimum alternate tax. Suggesting a slew of initiatives in its pre-budget memorandum, the chamber's chief economist, Omkar Goswami said the thrust of this year's budget recommendations is to push for eight per cent GDP growth, which implies 11 per cent growth of manufacturing. Apart from seeking a cut in corporate tax rates, CII also suggested abolition of five per cent surcharge on personal tax and elimination of the dividend tax in the hands of recipients as introduced in the previous budget on the grounds that it is unwarranted double taxation of income. Identifying textiles as a sector having huge growth potential and large employment opportunities, the chamber suggested eight per cent excise duty on yarn, woven, knitted fabrics, garments and made-ups and removal of SSI reservation on the knitted fabrics sector. A part of forex reserves should be utilsed to set up a Created in India Fund for marketing and branding Indian textiles abroad, modernisation fund for financing import of the machinery and Global Textiles and Garments Outreach Fund to help acquire textile, garments and allied companies abroad, it said. A cabinet committee on tourism should be set up under the chairmanship of the Prime Minister, it said adding that an outlay on tourism should be at least three per cent of the total budget outlay for the next five years. Corporate restructuring through mergers, amalgamations and de- mergers should be facilitated by widening the scope of section 2 (19AA) and section 72A, the chamber said and added that greater tax incentives should be given to banks, financial institutions as well as NBFCs for provisioning for non-performing loans. It also said that 16 per cent special excise duty should be eliminated within one year and an eight per cent excise duty on textiles, garments, apparel, computer hardware and GC sheets should be charged.
Source: IANS
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