In its pre-Budget memorandum submitted to the finance ministry, the industry chamber sought a more integrated approach to fiscal, monetary, industrial and trade policies.
Pointing out the need for an efficient and effective tax administration, Ficci suggested the setting up of a panel to streamline the provisions of direct tax laws.
Suggesting changes in the corporate tax structure, the pre-Budget memorandum called for a reduction in corporate tax.
According to Ficci, the corporate tax needs to be brought down from 35 percent to 30 percent and then to 25 per cent in the next two years to make more money available to industrialists for expansion, diversification and growth.
Asking for a differential tax structure for smaller companies, Ficci suggested that small companies should be taxed at a lower rate of 20 per cent.
Pointing out that corporate surcharges had become a permanent feature of the Indian tax system, Ficci asked the government to impose a surcharge only under compelling circumstances.
Ficci also wants the government to announce a firm policy regarding surcharges and the existing surcharges to be withdrawn.
On the issue of user charges, Ficci wants subsidised user charges for the poor and this should be limited to health and primary education.
The industry chamber has suggested that all services provided by the government, except law and order, should be charged a user fee to cover their costs.
Calling for reforms in the agriculture sector, it said efforts had to be made to remove all constraints on transport and trade in agricultural products, stocking of products and exports.
