Keep old-age funds out of FBT net, says Ficci

The Federation of Indian Chambers of Commerce and Industry (Ficci) has urged the government to keep superannuation funds outside the purview of fringe benefit tax (FBT) saying that since the government's intention is to move towards Asean levels of tax rates, it is imperative to abolish the levy as no Asean country has the concept of the FBT.

The chamber has pointed out that including employees' superannuation funds within the ambit of the tax is making the corporates discontinue superannuation schemes and taking over the liability to pay pension without funding the same.

It said that such practices are undesirable in terms of employees social security.