In order to get the economy back on track, the government should introduce further fiscal incentives to push investment-led growth and encourage consumer spending, said Federation of Indian Chambers of Commerce and Industry (Ficci) in its pre-budget wish list given to the finance ministry.
Re-introduction of investment allowance, continuing tax holiday benefits for housing, telecom, power and incentivising investments in the agriculture sector are some of the recommendations given by Ficci to ramp-up investment.
In a meeting with Revenue Secretary PV Bhide, Ficci President Harsh Pati Singhania stressed the need to maintain fiscal measures to bring back the economy to 8 per cent plus growth rate, said a Ficci release.
The lobby suggested reduction of personal income tax rate to 25 per cent to boost consumer spending that will eventually drive industrial revival. It also suggested that the maximum income tax slab should be pushed upwards to the Rs 10-lakh bench mark. At present, the highest tax slab is at 5 lakh and above.
According to Singhania, it is important that excise duty at 8 per cent and service tax at 10 per cent are continued at least till the next fiscal. Ficci also suggested an immediate implementation of goods and services tax (GST) at 8 per cent.
“The government is serious about getting the economy back on track. It promised to be a positive and fruitful interaction.” said Singhania, after the meeting.
Other premier industry chambers like Confederation of Indian Industries (CII) and PHD chamber did not give their suggestions to the revenue secretary today. The PHD chamber is scheduled to submit its recommendations on Friday.
