The industry bodies suggested lowering the corporate tax to 18-25 per cent, from up to 30 per cent at present. The exporters, who are grappling with blockage of working capital, pressed for exemption from tax on export income or lower levies on forex earnings and faster clearance of GST refunds.
"The finance minister has promised 25 per cent corporate tax rate long back and we expect that the finance minister will fulfil his promise in this Budget," Ficci President Pankaj Patel told PTI.
"We have asked to reduce the corporate taxes. Across the world, people are reducing corporate taxes and India is among the highest. We do need to create more demand and capacities for private investment and if you see today, GST has increased the tax rates," CII President Shobana Kamineni said.
CII suggested that the road map for corporate tax rate for India should include reducing it to 18 per cent (all inclusive) at the earliest and withdrawal of surcharges and cesses.
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According to Shah, refunds of exporters to the tune of at least Rs 60,000-70,000 crore are stuck post GST rollout in July.
"We have asked the finance minister to take the corporate tax to 25 per cent comparing with developed and industrialised nations. This would help in investment and which, in turn, would increase employment opportunities. Dividend distribution tax, which is around 20 per cent, should also be lesser," said Assocham President Sandeep Jajodia.
"Incentives may be provided based on twin criteria of growth in exports and growth in workers so that while export is increased, the employment intensive units also get a boost," exporters' body FIEO said.
"We have requested for reduction in the direct taxes and a scheme to boost women employment and expediting the refunds under GST as they have been delayed," P R Aqueel Ahmed, Vice- Chairman of the Council for Leather Exports.
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